LET'S LEARN!

GROUP2 BUISNESS MATH

GIVEN:
P= P 200,000 R=12% T= 1 YEAR
1ST STEP: MONTHLY AMORTIZATION
GIVEN:

P=P 200,000 = 0.01×200,00(1 + 0.01)^12

I= 0.01 (1 + 0.01)^12-1
N=12 =2,253.65006
A= I×P×(1+I)^N 0.12682503
(1+I)^N - 1
A= 17,769.76
2ND STEP: TOTAL PAYMENT
TOTAL PAYMENT= MONTHLY AMORTIZATION×NUMBER OF MONTHS
TOTAL PAYMENT=17,769.76×12
TOTAL PAYMENT= P 213,237.12

3RD STEP: TOTAL INTEREST

TOTAL PAYMENT - PRINCIPAL
TOTAL INTEREST= 213,237.12 - 200,000
TOTAL INTEREST = P13,237.12
 INTEREST COLUMN BEGINNING BALANCE × MONTHLY RATE

1ST MONTH 200,000× 01= 2,000

PRINCIPAL COLUMN PAYMENT - INTEREST

1ST MONTH 17, 769.76 - 2,000= 15,769.76

ENDING MONTH COLUMN BEGINNING BALANCE - PRINCIPAL

1ST MONTH 200,000 - 15,769.76
=184,230.24
THANK YOU!!