Periodic Repayment of the

Period Outstanding Balance Interest Payment Principal

1 750,000 30,000 79,914.13 49,914.13

2 700,085.87 28003.43 79,914.13 51910.70

3 648,175.17 25927.01 79,914.13 53987.12

4 594,188.05 23767.52 79,914.13 56146.61

5 538,041.44 21521.66 79,914.13 58392.47

6 479,648.97 19185.96 79,914.13 60728.17

7 418,920.80 16756.83 79,914.13 63157.30

8 355,763.50 14230.54 79,914.13 65683.59

9 290,079.91 11603.20 79,914.13 68310.93

10 221,768.98 8870.76 79,914.13 71043.37

11 150,725.61 6029.02 79,914.13 73885.11

12 76,840.50 3073.62 79,914.13 76840.51

TOTAL 208,970 958,969.56 750,000.01

VILLANUEVA, JOSEPHINE M.
M117D

Christian bought a car worth P1, 500,000, with a down payment of P750, 000 and the
balance is payable at the end of every 6 months for 6 years. If the interest is at 8%
compounded semiannually, how much is the semiannual installment?

R= Ai v =R = P 79,914.13
1 – (1-i)-n

= 750,000 (.04)
1- (1- .04)-12

Amortization Schedule
Celine deposits P35, 000 every three months in 3 years at 6% compounded quarterly.
Construct a sinking fund schedule.

S=R (1+i)n – 1 S = P 456, 442.40

i

= 35,000 (1+.015)12 – 1
.015

Sinking Fund Schedule

No. of Payments Deposit Interest Increase in Fund Amount in Fund

1 35,000 0 35,000 35,000

2 35,000 525 35,525 70,525

3 35,000 1057.88 36,058 106,583

4 35,000 1598.74 36,599 143,182

5 35,000 2147.72 37,148 180,329

6 35,000 2704.94 37,705 218,034

7 35,000 3270.51 38,271 256,305

8 35,000 3844.57 38,845 295,149

9 35,000 4427.24 39,427 334,577

10 35,000 5018.65 40,019 374,595

11 35,000 5618.93 40,619 415,214

12 35,000 6228.21 41,228 456,442

TOTAL 420,000 36442.40 456,442