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    MOI Report Housing Loan

    Uploaded by

    Yuki-Pauline Nagato
    This document discusses a housing loan taken out by Mrs. Aguilar in 1993 for ₱227,850 at 12% interest to be paid back over 25 years in monthly installments. It provides the terms of the loan and calculations needed to determine the amortization factor, monthly payment amount, future value of the annuity, total amount to be paid back, and total interest paid over the life of the loan. A housing loan allows a borrower to purchase a home by borrowing money from a bank at a fixed or adjustable interest rate to be repaid in regular monthly installments over a set period of time, with interest making up a larger portion of early payments that decreases as the principal is paid down over time

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    © All Rights Reserved
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    MOI Report Housing Loan

    Uploaded by

    Yuki-Pauline Nagato
    13 views12 pages
    This document discusses a housing loan taken out by Mrs. Aguilar in 1993 for ₱227,850 at 12% interest to be paid back over 25 years in monthly installments. It provides the terms of the loan and calculations needed to determine the amortization factor, monthly payment amount, future value of the annuity, total amount to be paid back, and total interest paid over the life of the loan. A housing loan allows a borrower to purchase a home by borrowing money from a bank at a fixed or adjustable interest rate to be repaid in regular monthly installments over a set period of time, with interest making up a larger portion of early payments that decreases as the principal is paid down over time

    Original Description:

    Mathematics of Investment

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    This document discusses a housing loan taken out by Mrs. Aguilar in 1993 for ₱227,850 at 12% interest to be paid back over 25 years in monthly installments. It provides the terms of the loan and calculations needed to determine the amortization factor, monthly payment amount, future value of the annuity, total amount to be paid back, and total interest paid over the life of the loan. A housing loan allows a borrower to purchase a home by borrowing money from a bank at a fixed or adjustable interest rate to be repaid in regular monthly installments over a set period of time, with interest making up a larger portion of early payments that decreases as the principal is paid down over time

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    13 views12 pages

    MOI Report Housing Loan

    Uploaded by

    Yuki-Pauline Nagato
    This document discusses a housing loan taken out by Mrs. Aguilar in 1993 for ₱227,850 at 12% interest to be paid back over 25 years in monthly installments. It provides the terms of the loan and calculations needed to determine the amortization factor, monthly payment amount, future value of the annuity, total amount to be paid back, and total interest paid over the life of the loan. A housing loan allows a borrower to purchase a home by borrowing money from a bank at a fixed or adjustable interest rate to be repaid in regular monthly installments over a set period of time, with interest making up a larger portion of early payments that decreases as the principal is paid down over time

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 12

    PLANTERS DEVELOPMENT

    BANK
    (Housing loan)
    Group 4 BBM 112/ BGC/ 09:30-10:30/ MWF
    Housing Loan as defined:

    A sum of money borrowed from a financial


    institution or bank to purchase a house. Home
    loans consist of an adjustable or fixed interest rate
    and payment terms.
    Parts of The Note
    Problem

    Mrs. Aguilar wrote a 25 year 12% interest


    bearing note for 227,850.00 on November 1, 1993.
    If the loan is to be paid back in monthly
    installments starting December 1,1993, calculate:
    a.) the amortization factor and the monthly
    amortization
    b.) future value of an ordinary annuity
    c.) the total amount to be paid back, and the total
    interest paid
    Given:
    A= 227,850.00
    j= 12%
    m=12
    t= 25 years
    i=0.01
    n=300
    a.) the amortization factor
    a.) the monthly amortization (R)
    First Year of Amortization
    b.) future value of an ordinary annuity (S)
    c.1) the total amount to be paid back
    c.2) total interest to be paid
    LOAN SUMMARY
    Initially, a large portion of each payment is devoted to interest. As the loan
    matures, larger portions go towards paying down the principal. Balance on
    Principal Remaining also decreases until it reaches Php 0 or when the loan is
    already paid in full.

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