AMORTIZATION OF DEBT.

A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included, by
equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment (or
amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included, by
equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment (or
amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included, by
equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment (or
amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included, by
equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment (or
amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.

AMORTIZATION OF DEBT. A debt, whose present value is A, is said to be amortized under a given rate of interest, if all liabilities as to principal
and interest are discharged by a sequence of periodic payments. When the payments are equal, as is usually the case, they form an annuity whose
present value must equal A, the original liability. Hence, most problems in the amortization of debts involve the present value formulas for annuities.

DRILLS
1. A man borrows P15,000, with interest payable annually at the rate 5%. The debt is to be paid, interest as due and original principal included, by
equal installments at the end of each year for 5years, (a) Find the annual payment. (b) Form a schedule showing the progress of repayment (or
amortization) of the principal.
2. A man deposits P10,000 with a trust company which credits 5% interest annually. The fund is to provide equal payments at the end of each
year for 5 years, at the end of which time the fund is to be exhausted, (a) Find the annual payment to three decimal places. (b) Form a table
showing the amortization of the fund.

SEATWORK
It was agreed to amortize a debt of P200,000 with interest at 5% by 12 equal annual payments, the first due in one year. (a) Find the annual
payment to three decimal places. (b) Form a table showing the amortization of the fund.