How much do you need to settle your loan

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Q1. You have just found the perfect home. However, in order to buy it, you will need to take out a 2 million pesos, 30- years mortgage at an annual rate of 9 percent. What will your monthly mortgage payment be?

Q2. (using problem #1) assuming you would like to pay off your debt after making 3 yearly payments, how much do you need to settle your loan?

Q3. ( using problem #2) Let's say that exactly ten years ago you took out a 2 million pesos, 30-year mortgage with an annual interest rate of 9 % and monthly payment of ( regarding answer in # 1). But since you took out that loan, housing interest rates have dropped. You now have the opportunity to refinance your loan at an annual rate of 7 % over 20 years. You need to know what the outstanding balance on your current loan is so you can take out a lower interest rate loan and pay it off. If you just made the 120th payment and have 240 payment remaining, what's the current loan balance? What will be your new monthly payment if you can do the refinancing?

Q4. A generator is purchased on installment by your school. The school makes a 25 thousand pesos down payment and owes a balance of 50 thousand pesos to be paid quarterly in 3 years. Find the difference in the cash value and installment value of the equipment if money is worth 8% compounded quarterly?

Reference no: EM132956906

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