REAL ESTATE BOARD EXAM

QUESTION ON MACEDA LAW, RA 6552

Mr.BAGSAK JUD KO bought a 200 sq.m. Subdivision lot at P3,000/sq.m.
He paid 25% down payment and thereafter proceeded to pay in 120
equal amortizations at 19% interest per annum. He has paid 84 monthly
amortizations totalling P737,621.84 inclusive of penalty interest of
P32, 000. What is Mr. Lumawags cash surrender value under the Maceda
Law.
a. P513,373 c . 443,811
b. P423,373 d. 442,573

Answer: P513,373
COMPUTATION:
STEP 1 COMPUTE FIFTY
(50%)
FOR THE TOTAL
PAYMENTS
MADE
DOWN
INSTALLMENTS
TOTAL PAYMENTS

150000
705622
855622
427811

STEP 2 PLUS FIVE

PERCENT
42781.1
EVERY YEAR (AFTER
42781.1
FIVE YEARS OF INSTALLMENTS
TOTAL

513373.2