Business Finance Activity
Business Finance Activity
Buag 4/3/2025
ABM 12 - Accountancy Business Finance
Assignment:
Maria took a loan of PHP 6,000,000 in PAG IBIG FUND to buy a house with an interest of 6% p.a. and
payable for 30 years.
A. Flat Rate interest
1. How large are her monthly payments?
𝑬𝑴𝑰 = 6,000,000 + (6,000,000 × 0.06 × 30)/360 =
𝑷𝑯𝑷𝟒𝟔,𝟔𝟔𝟔.𝟔𝟕
Compared to the diminishing/reducing interest rate, the total interest in the flat rate is more. As a
result, it would be more cost-effective to take out a loan with a decreasing interest rate.
Mohammad Zeth F Dimalanta 4/3/2025
ABM 12 - Accountancy Business Finance
Assignment:
Maria took a loan of PHP 6,000,000 in PAG IBIG FUND to buy a house with an interest of 6% p.a. and
payable for 30 years.