Un i v ers it y of S a nt o T o m as

SENIOR HIGH SCHOOL

Name 1 __________________________________CN_____
Name 2 __________________________________CN_____ Score___________________
Name 3 __________________________________CN_____ Date____________________
BUSINESS MATH
Amortization

Prepare an amortization schedule for the beginning and end of a ₱1.5 million car loan at 5% interest
compounded semiannually payable in five years. If no down payment is made, complete the amortization
table until the tenth period row.

Period Starting Balance Payment (RP) Principal Interest Ending Balance

1 ₱1,500,000 ₱171,388.14 ₱133,888.14 ₱37,500 ₱1,366,111.86
2 ₱1,366,111.86 ₱171,388.14 ₱137,235.34 ₱34,152.80 ₱1,228,876.52
3 ₱1,228,876.52 ₱171,388.14 ₱140,666.23 ₱30,721.91 ₱1,088,210.29
4 ₱1,088,210.29 ₱171,388.14 ₱144,182.88 ₱27,205.26 ₱944,027.41
5 ₱944,027.41 ₱171,388.14 ₱147,787.45 ₱23,600.69 ₱796,239.96
6 ₱796,239.96 ₱171,388.14 ₱151,482.14 ₱19,906.00 ₱644,757.82
7 ₱644,757.82 ₱171,388.14 ₱155,269.19 ₱16,118.95 ₱489,488.63
8 ₱489,488.63 ₱171,388.14 ₱159,150.92 ₱12,237.22 ₱330,337.71
9 ₱330,337.71 ₱171,388.14 ₱163,129.70 ₱8,258.44 ₱167,208.01
10 ₱167,208.01 ₱171,388.14 ₱167,207.94 ₱4,180.20 ₱0.07
Total

Answer the following:

1. What is the sum of all the payments? ___________
2. What is the sum of all the principal amount? ___________
3. What is the sum of all the interest paid? ___________
4. What is the ending balance in the tenth month payment? ___________
5. What do you observe with the principal in every payment period?
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6. What do you observe with the interest in every payment period?
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