Calculate the following manually. a. How much interest would you pay for 6 years for each bank offer? b. How much monthly payment is needed for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 6 years?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 3PA: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...
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If you are planning to apply for a personal loan and borrow PhP 50,000 and repay the principal
and Interest for an agreed length of time of 6 years that is compounded monthly.
Calculate the following manually.
a. How much Interest would you pay for 6 years for each bank offer?
b. How much monthly payment is needed for each bank offer?
c. Which is the best option for you among the given choices below if you are to pay monthly
for 6 years?
Justify your answer and apply what you have learned on simple and compound interest.
Bank (Personal Loan) Monthly Interest Rate
A
B
с
D
E
1.3%
1.89%
1.22%
1.5%
1.25%
Transcribed Image Text:If you are planning to apply for a personal loan and borrow PhP 50,000 and repay the principal and Interest for an agreed length of time of 6 years that is compounded monthly. Calculate the following manually. a. How much Interest would you pay for 6 years for each bank offer? b. How much monthly payment is needed for each bank offer? c. Which is the best option for you among the given choices below if you are to pay monthly for 6 years? Justify your answer and apply what you have learned on simple and compound interest. Bank (Personal Loan) Monthly Interest Rate A B с D E 1.3% 1.89% 1.22% 1.5% 1.25%
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