Name: LEZEL G.

ASENIERO Date: November 26, 2022

Course & Year: BSBA-2 EDP Code: FIN 212-83367

General instructions:
- Do not round off in the middle of the computation.
- 2 decimal places for the final answer
- Do not indicate the Peso sign.
- Drop the % sign in answering questions that needs %
- Show your solution in submitted (prepare this is in Word File)

Problem 1 – Installment payment

Loan Amount: 1,700.
Interest rate: 8%
Term: 10 months

a. How much is the monthly installment?

b. How much is the total finance charge?

R = 8% / 12months = 0.6666666666% or 0.00666666666667

1-(1+r)^-n = 1-(1+0.00666666666667)^-10
1-(1+r)^-n = 1 - 0.935713985
1-(1+r)^-n = 0.064286014 N = 10
PV = 1,700

PV x R = 1,700 x 0.0066666666667
PV x R = 11.3333333333

P = 11.3333333333/ 0.064286014
a.) P = 176.295474368 or 176.30 Monthly Installment fee

= 176.295474368 x 10 months
= 1762.95474368 total payment

b.) 1762.95474368 – 1,700 = 62.9547436762 or 62.95 Total Finance Charge

Problem 2 – Single payment

Sofia Pyang-er have taken out a P3,500, 8%, 2-year simple interest loan.
a. How much is the finance charge if it’s a single payment loan?

Answer: 3,500 x 8% x 2 = 560 Finance Charge

Problem 3 – Installment payment

America Gomez made a loan amounting to P900,000 with an interest rate of 12.5% for 4 years. Payment is made semi-annual.

a. How much will be the installment payment?

b. How much will be the total finance charge?

PV = 900,000
R = 12.5% / 2 = 6.25% or 0.0625
N = 4 years x 2 installments = 8

PV x R = 56,250
1-(1+r)^-n = 1 – 0.615699059
1-(1+r)^-n = 0.384300941

P = 56,250 / 0.384300941
a.) P = 146,369.665or 146,369.67 installment payment

TFC = (PxN) – Loan amount

 TFC = (56,250 x 8) – (700,000)
TFC = 450,000 – 700,000
b.)TFC = 450,000 total finance charge

Problem 4 – Discounted
Loan Amount = P5,100
Interest = 10.5%
Term = 1.5 years

a. Using the discounted method and payable, 1 time, on due date, how much will be the total interest?
P5,100 x 10.5% x 2 years = 1,071
Total Interest = 1,071

b. Using the discounted method and payable, 1 time, on due date, how much is the loan outstanding balance or money
received by the debtor?
P5,100 – 1,071 = 3,929
LOB = 3,929

c. Using the discounted method and payable, 1 time, on due date, how much will be the APC? In %.
Interest per period = 535.5
Outstanding balance = 3,929

APC = Interest per period / Outstanding balance

APC = 535.5/3,929 = 0.136294222 or 13.63%

Problem 5 – Installment payment

You made a personal loan of P10,100, 11%, for 11months.

a. Compute for the monthly payments?

b. How much is the total finance charge?
c. How much is the monthly finance charge?
d. How much is the monthly principal payment per month?

R = 11% / 12 = 0.00916666666 or 0.91666666666%

PV = 10,100
N = 11months

PV x R = 92.5833333333
1-(1+r)^-n = 1 – 1.105584313
1-(1+r)^-n = 0.105584313

P = 876.8663706 or 876.87 monthly installment payments

TFC = (MP x N) – Loan Amount

TFC = (876.8663706 x 11) – 10,100
TFC = 9,645.530076 – 10,100
TFC = 454.4699237 or 454.47 TFC

MFC = TFC/N
MFC = 454.4699237 / 11
MFC = 41.31544761 or 41.32 monthly finance charge

MPP = Loan amount / N

MPP = 10,100 / 15
MPP = 918.1818182or 918.19 monthly principal payment
Problem 6 – Installment payment.
January 1, 2021, Yo Lin Wu made a loan of P57,000 and is payable every quarter for one year. Interest rate of 8%.

a. How much is the quarterly payment?

b. How much is the total finance charge?
c. How much will be the finance charge per quarter?
N=4
PV = 57,000
R = 8% / 4 = 2% or 0.02

PV x R = 57,000 x 0.02
PV x R = 1,140

1-(1+r)^-n = 1 – (1+0.02)^-4
1-(1+r)^-n = 1 – 0.923845426
1-(1+r)^-n = 0.076154573

P = 14,969.55409 or 14,969.56 quarterly payment

TFC = (P x N) – Loan Amount

TFC = (14,969.55409 x 4) – 100,000
TFC = 59,878.21637 – 100,000
TFC = 40,121.78363 or 40,121.78 total finance charge

QFC = TFC / N
QFC = 40,121.78363 / 4
QFC = 10,303.44591 or 10,303.46 quarterly finance charge

Problem 7
You made a loan amounting to 750,000. Interest is 8%. Terms is 36 months, payable quarterly.

a. Compute for the quarterly payment.

b. How much is the total finance charge?
c. How much is the quarterly finance charge?
d. How much is the quarterly payment for principal

N = 36months / 12 = 3 years x 4 = 12
R = 8% / 4 = 2% or 0.02
PV = 750,000

R = 8% / 12 = 0.00666666666 or 0.66666666666%
PV = 750,000
N = 12 quarters

PV x R = 5,000
1-(1+r)^-n = 1 – 1.082999498
1-(1+r)^-n = 0. 082999498

P = 60,244.60757 or 60,244.61 quarterly payments

TFC = (MP x N) – Loan Amount

TFC = (60,244.60757 x 12) – 750,000
TFC = (722,935.2908) – 750,000
TFC = 27,064.70921 or 27,064.71 TFC

QFC = TFC/N
QFC = 27,064.70921 / 12
QFC = 2,255.392464 or 2,255.39 monthly finance charge

QPP = Loan amount / N

QPP = 750,000 / 12
QPP = 62,500 monthly principal payment