answer number 40, 41, and 42 with solutions 40. How much is the remaining liability afterthe 6th payment?Sol'n:C. P7 976.51D. P7 683.70A. P9 500.13B. P9 421.0741. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for15 years? Assume that the market rateis 3%.A. P96 279.29B. P125 348.32Soľn:C. P208 220.71D. P221 627.6142. Which of the two companies gives a better investment: company A with a current market value ofP3.55 and P0.72 dividend or company BSoln:with a current market value of P53.20 anda dividend of P7.32?A. company AB. company BC. both A and BD. none of them For 36- 40: Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 2 years with aninterest rate of 9% compounded quarterly. As a collateral, he offered his used car with anappraised value of P250 000 which the lender accepted. Given the first five rows of theamortization table of the loan, answer the questions that follow.Regular Payment Interest Component of Principal Component ofLoan BalancePeriodPaymentPayment180 000.0016 251.78163 748.224 050.0020 301.7820 301.7816 617.44147 130.783 684.333310.4416 991.34130 139.4420 301.782 928.1417 373.64112 765.7920 301.781234

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Business

Accounting

40. How much is the remaining liability after the 6th payment?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

answer number 40, 41, and 42 with solutions

40. How much is the remaining liability after
the 6th payment?
Sol'n:
C. P7 976.51
D. P7 683.70
A. P9 500.13
B. P9 421.07
41. What is the purchase price of a bond worth P150 000 with a coupon rate of 7% payable annually for
15 years? Assume that the market rate
is 3%.
A. P96 279.29
B. P125 348.32
Soľn:
C. P208 220.71
D. P221 627.61
42. Which of the two companies gives a better investment: company A with a current market value of
P3.55 and P0.72 dividend or company B
Soln:
with a current market value of P53.20 and
a dividend of P7.32?
A. company A
B. company B
C. both A and B
D. none of them

For 36- 40: Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 2 years with an
interest rate of 9% compounded quarterly. As a collateral, he offered his used car with an
appraised value of P250 000 which the lender accepted. Given the first five rows of the
amortization table of the loan, answer the questions that follow.
Regular Payment Interest Component of Principal Component of
Loan Balance
Period
Payment
Payment
180 000.00
16 251.78
163 748.22
4 050.00
20 301.78
20 301.78
16 617.44
147 130.78
3 684.33
3310.44
16 991.34
130 139.44
20 301.78
2 928.14
17 373.64
112 765.79
20 301.78
1234

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