Peter would like to purchase a new house of 1,000,000 baht. He plans to take the housing loan from the bank for 10 years whereas the bank requires Peter to make a down payment of 20%. The bank will ch

Posted: December 30th, 2021

1. Peter would like to purchase a new house of 1,000,000 baht. He plans to take the housing loan from the bank for 10 years whereas the bank requires Peter to make a down payment of 20%. The bank will charge interest rate at 12% but allows Peter to choose between making monthly repayments or annual repayments. How much is the annual repayments?
2. Robert has deposited 100,000 baht with XYZ Bank with the annual interest rate of 6% per year. How many years does Robert need to wait until his deposit will become double or around 200,000 baht
3. Compute the present value of 10-year annuity of 10,000 baht per year with the first payment starts in at the end of 5th year. The interest rate is 5%