Albert borrowed 180,000 to be repaid with equal quarterly payments for 2 and 1/2 years with an interest rate of 9% compounded quarterly. As a collateral, he offered his used car with an appraised value of 250,000 which the lender accepted. Given the first five rows of the amortization table of the loan, answer the questions that follow.

38. How many payments are needed to discharge the loan? A. 2.5 B. 5 C. 10 D. 12

39. What is the loan to collateral ratio? A. 9% B. 25% C. 67% D. 72%

40. How much goes to pay the principal on the 3rd payment? A. 16, 251.78 B. 16, 617.44 C. 16, 991.34 D. 17, 373.64

41. How much goes to pay the principal on the 5th payment A. 2537.23 B. 2727.63 C. 2817.96 D. 2927.81 An annuity contract provides for the payment of 2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annualy. What is the conversion period?

A. m=1 B. m=2 C. m=4 D. m=6

What is the amount of the annuity at the end of 10 years? A. 3,838,328.45 B. 3,670,994.35 C. 380,786.58 D. 378,698.24

For number 38 to 41, refer to the following problem and table. Albert borrowed P180 000 to be repaid with equal quarterly payments for 2 12 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. Period Regular Payment Loan Balance Interest Component Principal Component of Payment of Payment 0 180 000.00 1 20 301.78 4 050.00 16 251.78 163 748.22 2 20 301.78 3 684.33 16 617.44 147 130.78 130 139.44 3 20 301.78 3 310.44 16 991.34 4 20 301.78 2928.14 17 373.64 112 765.79 38. How many payments are needed to discharge the loan? O A 2.5 OB. 5 O C. 10 OD. 12 39. What is the loan-to-collateral ratio? (2 points) O A. 9% OB. 25% O C. 67% OD. 72% 40. How much goes to pay the principal on the 3rd payment? O A. P16 251.78 O B. P16 617.44 OC. P16 991.34 OD. P17 373.64 2 147 130.78 20 301.78 20 301.78 20 301.78 3 3 684.33 3 310.44 2 928.14 16 617.44 16 991.34 130 139.44 112 765.79 4 17 373.64 38. How many payments are needed to discharge the loan? O A 2.5 O C. 10 OD. 12 39. What is the loan-to-collateral ratio? (2 points) O A 9% O B. 25% OC. 67% OD. 72% -40. How much goes to pay the principal on the 3rd payment? O A P16 251.78 O B. P16 617.44 O c. P16 991.34 OD. P17 373.64 terest on the 5th payment? (2 points) 41. How much goes to pay the OA. 2537.23 O B. 2727.63 O c. 2817.96 O D. 2927.81 36. For numbers 36 and 37, refer to the following problem. An annuity contract provides for the payment of P2,200 at the end of every month for 10 years. Money is worth 7% compounded semi-annually. What is the conversion period? O A. m=1 OB. m=2 O C. m=4 O D. m6 37. What is the amount of the annuity at the end of 10 years? (2 points) O A. P3 838 328.45 O B. P3 670 994.35 O C. P380 786.58 O D. P378 698.24