1.Romell acquired a business loan of Php 120,000 to be amortized by equal payments at the end of each 3 months for 3 years at 10% interest compounded quarterly. Find the Periodic payment must he pay.
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Answer:
11,698.46
Step-by-step explanation:
Given:
Loan Amount (a) = 120,000.00
Interest Rate (r) = 10%/4 = 0.025
Number of Payments (n) = 3 years x 4 quarters = 12
Formula: p=a/{[(1+r)^n]-1}/[r(1+r)^n
Solution:
= 120,000/{[(1+0.025)^12]-1}/[0.025(1+0.025)^12]
= 11,698.46