1.

Levi borrows a certain sum that bears interest at 16% compounded quarterly
for 2 years. He agrees to pay Php870 at the end of every 3 months to discharge
his debt. Find the original debt and construct the amortization schedule.
Given:
𝑗 −𝑚𝑡
𝑅[1−(1+ ) ]
𝑚
𝑅 = 870 𝑃𝑉 = 𝑗
𝑚

0.16 −(4)(2)
870[1−(1+ ) ]
4
𝑚=4 𝑃𝑉 = 0.16
4

𝑡 = 2 𝑦𝑒𝑎𝑟𝑠 𝑷𝑽 = 𝟓, 𝟖𝟓𝟕. 𝟒𝟖𝟖𝟎𝟒𝟏

𝑛 𝑜𝑟 𝑚𝑡 = 3 𝑚𝑜𝑛𝑡ℎ𝑠
𝑃𝑉 = ?
Amortization Schedule: (use 3 decimals)

Period Outstanding Interest at 4% Total Payment For Repayment

Principal at Due at End of at End of of Principal at
Beginning of Interval (IDEI) Interval (TPEI) End of Interval
Interval (OPBI) (RPEI)

1 5,857.488 234.300 870 635.7

2 5,221.788 208.872 870 661.128

3 4,560.66 182.426 870 687.574

4 3,873.086 154.923 870 715.077

5 3,158.009 126.320 870 743.68

6 2,414.329 96.573 870 773.427

7 1,640.902 65.636 870 804.364

8 836.538 33.462 870 836.538

Total 1,102.512 6,960 5,857.488

2. A loan of Php41,000 is to be amortized by equal payments each month for 6
months. If interest is 12% compounded monthly, find the periodic payment and
construct an amortization schedule.
Given:
𝑗
𝑃𝑉( )
𝑚
𝑃𝑉 = 41,000 𝑅= 𝑗 −𝑚𝑡
1−(1+ )
𝑚

0.12
41,000( )
12
𝑗 = 12% 𝑜𝑟 0.12 𝑅= 6
0.12 −(12)(12)
1−(1+ )
12

𝑚 = 12 𝑹 = 𝟕, 𝟎𝟕𝟒. 𝟒𝟖𝟑𝟎𝟑𝟓
6
𝑡=
12

𝑅 =?

Amortization Schedule: (use 3 decimals)

Period Outstanding Interest at 1% Total Payment For Repayment

Principal at Due at End of at End of of Principal at
Beginning of Interval (IDEI) Interval (TPEI) End of Interval
Interval (OPBI) (RPEI)

1 41,000 410 7,074.483 6,664.483

2 34,335.517 343.355 7,074.483 6,731.128

3 27,604.389 276.044 7,074.483 6,798.439

4 20,805.95 208.060 7,074.483 6,866.423

5 13,939.466 139.395 7,074.483 6,935.088

6 7,004.378 70.044 7,074.483 7,004.439

Total 1,446.897 42,446.898 41,000

3. A sinking fund is created by depositing Php1,500 annually at
9% compounded annually for 7 years. Find the amount at the end of the term
and construct a sinking fund.
Given:
𝑗 𝑚𝑡
𝑅[(1+ ) −1]
𝑚
𝑅 = 1,500 𝐹𝑉 = 𝑗
𝑚

0.09 (1)(7)
1,500[(1+ ) −1]
1
𝑗 = 9% 𝑜𝑟 0.09 𝐹𝑉 = 0.09
1

𝑚=1 𝑭𝑽 = 𝟏𝟑, 𝟖𝟎𝟎. 𝟔𝟓𝟐𝟎𝟏

𝑡=7
𝑃𝑉 = ?

Sinking Fund Schedule: (use 3 decimals)

Payment In Fund at the Interest at 9% Payment to In Fund at End

Interval Beginning of Received of Fund at End of of Interval (FEI)
Interval (FBI) Fund at End of Interval (PFEI)
Interval (IRFEI)

1 0 0 1,500 1,500

2 1,500 135 1,500 3,135

3 3,135 282.15 1,500 4,917.15

4 4,917.15 442.544 1,500 6,859.694

5 6,859.694 617.372 1,500 8,977.066

6 8,977.066 807.936 1,500 11,285.002

7 11,285.002 1,015.650 1,500 13,800.652

Total 3,300.652 10,500

4. How long will it take for semiannual contributions of Php36,289.33 to a Savings
Plan to grow to Php300,000 if the Saving's Plan earns 11% compounded
semiannually? Construct a sinking fund schedule.
Given:
𝑗
𝐹𝑉( )
𝑚
log[ +1]
𝑅
𝑅 = 36,289.33 𝑛= 𝑗
log(1+ )
𝑚

0.11
300,000( )
log[ 2 +1]
36,289.33
𝐹𝑉 = 300,000 𝑛= 0.11
log(1+ 2 )

𝑗 = 11% 𝑜𝑟 0.11 𝒏 = 𝟔. 𝟗𝟗𝟗𝟗𝟗𝟗𝟐𝟒𝟗 𝒔𝒆𝒎𝒊 𝒂𝒏𝒏𝒖𝒂𝒍𝒍𝒚

6.999999249
𝑚=2 𝑡=
2

𝑡 =? 𝒕 = 𝟑. 𝟒𝟗𝟗𝟗𝟗𝟗𝟔𝟐𝟓 𝒚𝒆𝒂𝒓𝒔
Sinking Fund Schedule: (use 3 decimals)

Payment In Fund at the Interest at 5.5% Payment to In Fund at End

Interval Beginning of Received of Fund at End of of Interval (FEI)
Interval (FBI) Fund at End of Interval (PFEI)
Interval (IRFEI)

1 0 0 36,289.33 36,289.33

2 36,289.33 1,995.913 36,289.33 74,574.573

3 74,574.573 4,101.602 36,289.33 114,965.505

4 114,965.505 6,323.103 36,289.33 157,577.938

5 157,577.938 8,666.787 36,289.33 202,534.055

6 202,534.055 11,139.373 36,289.33 249,962.758

7 249,962.758 13,747.952 36,289.33 300,000.04

Total 45,974.73 254025.31