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Levi borrows a certain sum that bears interest at 16% compounded quarterly
for 2 years. He agrees to pay Php870 at the end of every 3 months to discharge
his debt. Find the original debt and construct the amortization schedule.
Given:
𝑗 −𝑚𝑡
𝑅[1−(1+ ) ]
𝑚
𝑅 = 870 𝑃𝑉 = 𝑗
𝑚
0.16 −(4)(2)
870[1−(1+ ) ]
4
𝑚=4 𝑃𝑉 = 0.16
4
0.12
41,000( )
12
𝑗 = 12% 𝑜𝑟 0.12 𝑅= 6
0.12 −(12)(12)
1−(1+ )
12
𝑚 = 12 𝑹 = 𝟕, 𝟎𝟕𝟒. 𝟒𝟖𝟑𝟎𝟑𝟓
6
𝑡=
12
𝑅 =?
0.09 (1)(7)
1,500[(1+ ) −1]
1
𝑗 = 9% 𝑜𝑟 0.09 𝐹𝑉 = 0.09
1
1 0 0 1,500 1,500
0.11
300,000( )
log[ 2 +1]
36,289.33
𝐹𝑉 = 300,000 𝑛= 0.11
log(1+ 2 )
𝑡 =? 𝒕 = 𝟑. 𝟒𝟗𝟗𝟗𝟗𝟗𝟔𝟐𝟓 𝒚𝒆𝒂𝒓𝒔
Sinking Fund Schedule: (use 3 decimals)
1 0 0 36,289.33 36,289.33