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Bank A: Housing Loan Property Equity Loan

The document compares interest rates for housing loans and property equity loans across 3 banks (Bank A, B, C) for a condo price of 3,000,000 pesos over 5 years. Bank C offers the highest interest rate of 7% for a housing loan, resulting in monthly payments of 53,500 pesos. Bank B offers the lowest rate of 6.75%, resulting in monthly payments of 53,375 pesos. We conclude that Bank C has the highest interest rate and would require the largest monthly payments if Xyrus chooses a 5-year loan to pay for a 3,000,000 peso condo.

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Raesa Badel
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78 views5 pages

Bank A: Housing Loan Property Equity Loan

The document compares interest rates for housing loans and property equity loans across 3 banks (Bank A, B, C) for a condo price of 3,000,000 pesos over 5 years. Bank C offers the highest interest rate of 7% for a housing loan, resulting in monthly payments of 53,500 pesos. Bank B offers the lowest rate of 6.75%, resulting in monthly payments of 53,375 pesos. We conclude that Bank C has the highest interest rate and would require the largest monthly payments if Xyrus chooses a 5-year loan to pay for a 3,000,000 peso condo.

Uploaded by

Raesa Badel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Housing Loan Property Equity Loan

1 5.25% 6.25%
2 6.00% 7.00%
3 6.25% 7.25%
4 6.88% 7.88%
5 6.88% 7.88%
6-10 8.50% 9.50%
11-15 9.50% 10.50%
16-20 11.50% 12.50%

Bank A

What: Solve:

Interest- 6.88% -> 0.0688 3,000,000 x 0.0788 = 236,400

Condo Price: 3,000,000 pesos 3,000,000 x 0.0688 = 206,400

Years: 5 = 60 months 3,000,000 + 206,400 = 3,206,400

Equity = 7.88% -> 0.0788 3,206,400/ 60 = 53,440

53,440 pesos/ month

Loan Tenor Fixed Rate of Interest

1 year 5.75%
2-3 years 6.50%
4-5 years 6.75%
10 years 8.50%
15 years 10.25%
20 years 10.75%
Bank B

What: Solve:

Interest- 6.75% -> 0.0675 3,000,000 x 0.0675 = 202,500

Condo Price: 3,000,000 pesos 3,000,000 + 202,500 = 3,202,500

Years: 5 = 60 months 3,202,500/ 60 = 53,375

53,375 pesos/ month

Years Regular Housing Property Equity Loan


Loan
1 year 5.25% 6.25%
2-3 years 6.25% 7.25%
4-5 years 7% 8%
6-10 years 8% 9%
11- 15 years 9% 10%

Bank C

What: Solve:
Interest- 7% -> 0.07 3,000,000 x 0.08 = 240,000

Condo Price: 3,000,000 pesos 3,000,000 x 0.07 = 210,000

Years: 5 = 60 months 3,000,000 + 210,000 = 3,210,000

Equity = 8% -> 0.08 3,210,000/ 60 = 53,500

53,500 pesos/ month

Conclusion:
We therefore conclude that based on the
results of our research and computations,
Bank C has the highest interest rate
while Bank B has the lowest interest
rate.
Final Examination
in
General Mathematics

Submitted to: Mr. Bryan Cabuenas

Submitted by:

Housing Loan Group

Annatu, Carl Jalen C.

Badel, Raesa Angelika C.

Carandang, Jeraldine

De Belen, Joeres Shenne


De Leon, Carlos

Mondigo, Dwayne Austin

Roque, Chelsea

Sangil, Jade Samuel

Villanueva, Ruthiel

Problem:
Xyrus is planning to buy a condominium.
The unit’s average price is P3,000,000, in
which he wanted to pay it for 5 years. He
decided to put it in a housing loan but is
having a hard time in choosing which
bank has the highest interest rate.

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