Uni versi t y of S ant o Tom as

SENIOR HIGH SCHOOL

Name 1 Leona Daphne Bonzon CN 2

Name 2 Kervin Clark Davantes CN 12 Score___________________
Name 3 Pauline Anne Policarpio CN 33
Date____________________
BUSINESS MATH
Amortization
Prepare an amortization schedule for the beginning and end of a ₱1.5 million car loan at 5% interest compounded
semiannually payable in five years. If no down payment is made, complete the amortization table until the tenth
period row.

Period Starting Balance Payment (RP) Principal Interest Ending Balance

1 P1,500,000.00 P171,388.14 P133,888.14 P37,500 P1,366,111.86
2 P1,366,111.86 P171,388.14 P137,235.34 P34,152.80 P1,228,876.52
3 P1,228,876.52 P171,388.14 P140,666.23 P30,721.91 P1,088,210.29
4 P1,088,210.29 P171,388.14 P144,182.88 P27,205.26 P944,027.41
5 P944,027.41 P171,388.14 P147,787.45 P23,600.69 P796,239.96
6 P796,239.96 P171,388.14 P151,482.14 P19,906 P644,757.82
7 P644,757.82 P171,388.14 P155,269.19 P16,118.95 P489,488.63
8 P489,488.63 P171,388.14 P159,150.92 P12,237.22 P330,337.71
9 P330,337.71 P171,388.14 P163,129.7 P8,258.44 P167,208.01
10 P167,208.01 P171,388.14 P167,207.94 P4,180.2 P0.07
Total P1,713,881.4 P1,499,999.93 P213,881.47
Answer the following:
1. What is the sum of all the payments? P1,713,881.4
2. What is the sum of all the principal amount? P1,499,999.93
3. What is the sum of all the interest paid? P213,881.47
4. What is the ending balance in the tenth month payment? P0.07
5. What do you observe with the principal in every payment period? The principal increases at every payment
period.
6. What do you observe with the interest in every payment period? The interest decreases at every payment period.