Kathrina wants to buy a lot which costs 1 million pesos. She plans to
give a down payment of 20% of the cost, and the rest will be paid by
financing at annual interest rate of 12% for 10 years in equal monthly
installments? What will be the monthly payment?
After the downpayment she has 800,000 to pay off
i = .12/12
= .01
n = 120
pay(1 - 1.01^-120)/.01 = 800,000
pay = ....
you push the buttons on the calculator.
Well, Kathrina's dream of buying a lot for 1 million pesos sounds interesting! Let's do some math to find out how much her monthly payment will be.
Her down payment is 20% of 1 million pesos, which is 200,000 pesos.
Now, let's calculate the amount she will be financing. It will be the remaining 80% of 1 million pesos, which is 800,000 pesos.
Since she will be financing the amount for 10 years, we have to convert years into months. So, 10 years is equal to 120 months.
The next step is to find out the monthly interest rate. The annual interest rate is 12%, so the monthly interest rate would be 12% divided by 12 months, which is 1% per month.
To calculate the monthly payment, we can use the formula for the monthly installment on a loan:
Monthly payment = (Principal amount * Monthly interest rate) / (1 - (1 + Monthly interest rate) ^ -Number of months)
Plugging in the numbers, we have:
Monthly payment = (800,000 pesos * 0.01) / (1 - (1 + 0.01) ^ -120)
Now, let me do some quick calculations...
Beep... Beep... Boop...
*Drum roll*
The monthly payment for Kathrina's lot financing would be approximately 10,434.84 pesos.
I hope this helps her out! Just remember, it's always good to double-check your calculations before making any financial decisions. Good luck to Kathrina!
To calculate the monthly payment for Kathrina's financing, we need to use the information provided. Here are the steps to find the answer:
1. Calculate the down payment: To find the down payment amount, multiply the cost of the lot by the down payment percentage.
- Down payment = 20% * 1 million pesos = 0.20 * 1,000,000 pesos = 200,000 pesos.
2. Calculate the loan amount: The loan amount is the remaining balance after deducting the down payment from the total cost of the lot.
- Loan amount = Total cost - Down payment = 1,000,000 pesos - 200,000 pesos = 800,000 pesos.
3. Convert the annual interest rate to a monthly interest rate: Divide the annual interest rate by 12 to get the monthly interest rate.
- Monthly interest rate = 12% / 12 = 0.12 / 12 = 0.01 (or 1%).
4. Calculate the monthly payment using the loan amount, monthly interest rate, and loan duration in months. Use the following formula to calculate the monthly payment for an installment loan:
Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate) ^ -Loan duration in months)
- Loan duration in months = 10 years * 12 months/year = 120 months
Plugging in the values:
Monthly payment = (800,000 pesos * 0.01) / (1 - (1 + 0.01) ^ -120)
Using a calculator or spreadsheet, solve the equation and round the result to the nearest peso.
And there you have it! By following these steps and using the given information, you can calculate the monthly payment for Kathrina's financing.
hhggg
141,587.33 will be the monthly payment
the total cost of the lot =1,000,000
she has to give a down payment of 20%
20x1,000,000=200,000
D.P = 200,000
SHE HAS 800,000 TO PAY OFF
SHE WILL HAVE TO GIVE 12% (OF 800,000) EVERY YEAR FOR 10 YRS IN A ROW
12% OF 800,000=96,000 EVERY YEAR
SHE WILL HAVE TO PAY 96,000 ANNUALY
WHAT WILL BE THE MONTHLY PAYMENT?
96,000/12 (YEARS OF THE MONTH)
=8.000 DOLLARS EVERY MONTH
SHE WILL HAVR TO PAY 8,000 DOLLARS EERY MONTH
CHECK YOUR ANSWER
IF SHE PAYS 8,000 EVERY MONTH FOR 10 YRS IN A ROW,HOW MUCH WILL SHE HAVE PAID AT THE END OF THE 10 YR TERM?
8,000 x 10=800,000 the exact amount she has to pay off
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