Problems involving

Consumer Loans
Czashaine Mai T. Abella
Loan
A loan is a debt provided by

one entity (an individual or an

organization) to another entity

at an agreed interest rate.

Consumer
Loan
is the kind of loan given to an

individual for a personal or

family purpose. It is generally

simpler than business loan.

Let's solve some
problems!
 Example #1

ON NOVEMBER 19,2018, CHA-

CHA LOANED ₱100,000.00 AT

GIVEN:
5% COMPOUNDED P = 100,000.00

r= 5% or 0.05
QUARTERLY FOR HER DEBUT
t = 2.5 years (2 years and 6 months)
PREPARATIONS. HOW MUCH
m = 4
WILL SHE PAY IF SHE NEEDS

TO SETTLE THIS LOAN ON THE

DAY OF HER DEBUT WHICH IS

FORMULA:
ON MAY 19,2021? C= P (1 + r/m)^mt
 Example #2
GIVEN PATRICK WANTS TO BUY
A MACBOOK AIR THAT
₱10,000
REQUIRES  ₱ 10,000 DOWN
Down payment =

R = ₱1 500
PAYMENT AND MONTHLY
 r = 12%
INSTALLMENTS OF  ₱ 1 500
n = 12
FOR 12 MONTHS. WHAT IS
t = 1 year

i = 0.1
THE ACTUAL PRICE OF
THE MAC IF THE
PREVAILING INTEREST
FORMULA
RATE IS 12%
P = R [1-(1+i)^-nt/i]
COMPOUNDED
Price = Down Payment +Present Value 
MONTHLY?
 Example #3

PATRICK DECIDED TO BUY

GIVEN:
ANOTHER MACBOOK AIR THAT
P = 65,000
COSTS  ₱65 000. IT REQUIRES
r = 8% or 0.08
MONTHLY INSTALLMENTS
n = 12
OF  ₱3 000 AT 8%
i = 0.08/12

COMPOUNDED MONTHLY. HOW

LONG WOULD HE MAKE FORMULA:

PAYMENTS TO FULLY PAY THE P = R [1-(1+i)^-nt/i]

LAPTOP?
Post Test!!
 Post Test
Question
SAPPHIRE WANTS TO BUY GIVEN
A CHANEL BAG THAT HAS P = 5,000

MONTHLY INSTALLMENTS r = 6% or 0.06

OF  ₱1 200 FOR 1 YEAR. t = 1 year

WHAT IS THE PRICE OF m = 12

THE BAG IF THE INTEREST i = 0.005

RATE IS 6%

COMPOUNDED MONTHLY? FORMULA

P = R [1 - (1+i)^-mt/i]
Thank you for
listening!