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MOI Report Housing Loan

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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Yuki-Pauline Nagato
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44 views12 pages

MOI Report Housing Loan

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

Uploaded by

Yuki-Pauline Nagato
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 PPTX, PDF, TXT or read online on Scribd
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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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