Question 1194194: A ₱300,000 debt is to be paid by quarterly payments of ₱22,000 at
14% compounded quarterly with the smaller payment to be made
three months after the last full payment date.
a. How many regular payments of ₱22,000 are needed?
b. What is the outstanding balance after the eight payments?
c. How much of the ninth payment is interest?
d. How much of the ninth payment goes to the payment of the
principal?
e. Find the final payment
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! my spreadsheet is below.
answers to your questions are below.
a. How many regular payments of ₱22,000 are needed?
18 regular payments of 22,000 each are needed.
b. What is the outstanding balance after the eighth payment?
the outstanding balance after the 8th payment is equal to $195,905.60.
c. How much of the ninth payment is interest?
the interest part of the ninth payment is equal to $6,856.70.
d. How much of the ninth payment goes to the payment of the
principal?
the principal part of the ninth payment is equal to 22,000 minus 6,856.70 = $15,143.30.
e. Find the final payment
the final payment is equal to $18,892.42.
all of the required information is in the spreadsheet.
let me know if you have any questions.
theo
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