Basic Concept of Business Loan and Consumer Loan Business Loan Consumer Loan Amortization Collateral Mortgage Outstanding Balance

1. General Mathematics

3. Your family is planning to apply for a loan to purchase a car.
You offered by lending corporation the following information
regarding the amount you will be borrowing.
Option 1: A monthly payment of P23,500 for three years
Option 2: A monthly payment of P14,600 for five years

12. Solution:
Given: P = 1,000,000 i = 0.07 n = 1
F = P(1+i)n
F = 1,000,000(1 + 0.07) = 1,070,000
An amount of P1,070,000 must be paid after one year.

14. Solution:
Given: P = 1,200,000 Monthly payment = 31,000
Find: Total Interest
Total Amount = (31,000)(12)(5) = 1,860,000

15. Solution:
Total Interest = 1,860,000-1,200,000 = 660,000
The total amount of interest is P660,000

17. Solution:
Down payment = (Down payment rate) x (cash price)
= (0.02)(3,000,000) = 600,000
Amount of the Loan = (cash price) - (down payment)
= 3,000,000 – 600,000 = 2,400,000
The mortgage amount is P2,400,000

18. Solution:
Given: A = 400,000 r = 0.09 m =12
i = 0.09/12 = 0.005 n = (12)(3) = 36
Find: the regular payment R
Using the formula 𝑅 =
𝐴𝑖
1− 1+𝑖 −𝑛

20. Solution:
𝑅 =
𝐴𝑖
1 − 1 + 𝑖 −𝑛
=
(400,000)(0.0075)
1 − 1 + 0.0075 −36
= 12,719.89
The monthly payment is P12,719.89

23. THANK YOU
www.slideshare.net/reycastro1
@reylkastro2
reylkastro