Marjon Limot A.

September 15, 2020

BSBA-3B TTh(8:30pm-10:00pm)
Elective 100: Personal Finance Score: ____________
QUIZ No.5

1. Mario delos Reyes has just graduated from college and needs to buy a car to commute to
work. She estimates that she can afford to pay about Php 22,500.00 per month for a loan or
lease and has about Php100,000.00 in savings to use for down payment. Develop a plan to
guide him through his first car-buying experience, including
researching car type, deciding whether to buy a new car or used
car, negotiating the price and terms, and financing the
transaction. (20pts)

Answer:
To develop his plan its better for Mario to buy a brandnew car
which is his downpayment is Php 100,000.00 with his monthly
payments of Php 22,500.00. So therefore Mario must buy a
brandnew car with Assuming price of
Php 1,080,721.70 with the interest rate of 4.808% within
48 months or 4years to pay.

So therefore;

1,080,721.70  car price

-100,000.00 downpayment
Php 980,721.51  Principal loan amount

So therefore;
0.04808 0.04808 0.04808
M= 980,721.70[( 12 ( 1+ 12 )20 × 12]/[( 1+ 12 )4 × 12-1)]

= 980,721.70[(0.00400666(1+0.00400666)48]
-------------------------------------------------------
[(1+0.00400666)48-1)]

M =Php 22,500.13; monthly payments

 2. Calculate the monthly mortgage payments on the following mortgage loans using your
calculator. (10pts).

A. 80,000 at 6.5% for 30 years

Mortgage Formula:

𝒊 𝒊 𝒊
M= P[ ( 1+ )n × c]/[( 1+ )
𝒄 𝒄 𝒄

Where;
P = Principal loan amount
i = Monthly interest rate
n = Number of months required to repay the loan
c = Required monthly loan payments

So therefore;
0.065 0.065 0.065
M= 80,000[( 12 ( 1+ 12 )30 × 12]/[( 1+ 12 )30×12-1)]

= 80,000[(0.00541(1+0.00541)360]
---------------------------------------
[(1+0.00541)360-1)]

M = 505.65 or 505.866; monthly payments

B. 105,000 at 5.5% for 20 years

So therefore;
0.055 0.055 0.055
M= 105,000[( 12 ( 1+ 12 )20 × 12]/[( 1+ 12 )20 × 12-1)]

= 105,000[(0.00458(1+0.00458)240]
---------------------------------------
[(1+0.00458)240-1)]

M = 722.04 or 722.28; monthly payments

 C. 95,000 at 5% for 15 years

So therefore;
0.05 0.05 0.05
M= 95,000[( 12
( 1+ 12 )15 × 12]/[( 1+ 12
)15 × 12-1]

= 95,000[(0.00416(1+0.00416)180]
---------------------------------------
[(1+0.00416)180-1)]

M = 750.86 or 751.25; monthly payments