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LandBank Loan Interest Computation

The document contains sample computations for loans from three Philippine banks - LandBank, Balikbayad, and BDO Kabayan Loan. It shows the principal amount borrowed, interest rate, monthly payment, total payment including interest, and total interest for a 500,000 peso loan over 12 months for each bank. LandBank has the lowest monthly and total payments while Balikbayad has the highest interest rate, monthly and total payments.

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43 views3 pages

LandBank Loan Interest Computation

The document contains sample computations for loans from three Philippine banks - LandBank, Balikbayad, and BDO Kabayan Loan. It shows the principal amount borrowed, interest rate, monthly payment, total payment including interest, and total interest for a 500,000 peso loan over 12 months for each bank. LandBank has the lowest monthly and total payments while Balikbayad has the highest interest rate, monthly and total payments.

Uploaded by

guilegabrielalog
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

LandBank Sample Computation

P (Principal Amount to be Borrowed)= P500,000


r (Fixed Interest Rate per Annum)= 10.5%
n (Number of Months in a Term)= 12 months

P [r⁄n]
Monthly Payment =
[1 − (1 + r⁄n)−n ]

500,000 [10.5%⁄12]
Monthly Payment =
[1 − (1 + 10.5%⁄12)−12 ]

Monthly Payment = 𝐏𝟒𝟒, 𝟎𝟕𝟒. 𝟑𝟎𝟏𝟒𝟓

MP= P44,074.30145

Total Principal Amount plus the Interest = 𝑀𝑃 (𝑛)

Total Principal Amount plus the Interest = 44,074.30145 (12)

Total Principal Amount plus the Interest = 𝐏𝟓𝟐𝟖, 𝟖𝟗𝟏. 𝟒𝟏𝟕𝟒

TP (Total Principal Amount plus the Interest)= P528,891.4174

Total Interest = TP − P

Total Interest = 528,891.4174 − 500,000

Total Interest = 𝐏𝟐𝟖, 𝟖𝟗𝟏. 𝟒𝟏𝟕𝟒

Therefore, in LandBank, an OFW applying a P500,000 loan for a 12-month term will have a Total
Principal Amount plus the Interest which is P528,891.4174. Then the total interest will be P28,891.4174.
Lastly, the monthly payment for 1 year is P44,074.30145.
Balikbayad Sample Computation

P (Principal Amount to be Borrowed)= P500,000


r (Fixed Interest Rate per Annum)= 69%
n (Number of Months in a Term)= 12 months

P [r⁄n]
Monthly Payment =
[1 − (1 + r⁄n)−n ]

500,000 [69%⁄12]
Monthly Payment =
[1 − (1 + 69%⁄12)−12 ]

Monthly Payment = 𝐏𝟓𝟖, 𝟖𝟐𝟑. 𝟖𝟑𝟔𝟑𝟔

MP= P58,823.83636
Total Principal Amount plus the Interest = 𝑀𝑃 (𝑛)

Total Principal Amount plus the Interest = 58,823.83636 (12)

Total Principal Amount plus the Interest = 𝐏𝟕𝟎𝟓, 𝟖𝟖𝟔. 𝟎𝟑𝟔𝟑𝟐

TP (Total Principal Amount plus the Interest)= P705,886.03632

Total Interest = TP − P

Total Interest = 705,886.03632 − 500,000

Total Interest = 𝐏𝟐𝟎𝟓, 𝟖𝟖𝟔. 𝟎𝟑𝟔𝟑𝟐

Therefore, in Balikbayad, an OFW applying a P500,000 loan for a 12-month term will have a Total
Principal Amount plus the Interest which is P705,886.03632. Then the total interest will be
P205,886.03632. Lastly, the monthly payment for 1 year is P58,823.83636.
BDO Sample Computation

P (Principal Amount to be Borrowed)= P500,000


r (Fixed Interest Rate per Annum)= 9.48%
n (Number of Months in a Term)= 12 months

P [r⁄n]
Monthly Payment =
[1 − (1 + r⁄n)−n ]

500,000 [9.48%⁄12]
Monthly Payment =
[1 − (1 + 9.48%⁄12)−12 ]

Monthly Payment = 𝐏𝟒𝟑, 𝟖𝟑𝟕. 𝟏𝟏𝟏𝟗𝟐

MP= P43,837.11192
Total Principal Amount plus the Interest = 𝑀𝑃 (𝑛)

Total Principal Amount plus the Interest = 43,837.11192 (12)

Total Principal Amount plus the Interest = 𝐏𝟓𝟐𝟔, 𝟎𝟒𝟓. 𝟑𝟒𝟑

TP (Total Principal Amount plus the Interest)= P526,045.343

Total Interest = TP − P

Total Interest = 526,045.343 − 500,000

Total Interest = 𝐏𝟐𝟔, 𝟎𝟒𝟓. 𝟑𝟒𝟑

Therefore, in BDO Kabayan Loan, an OFW applying a P500,000 loan for a 12-month term will
have a Total Principal Amount plus the Interest which is P526,045.343. Then the total interest will be
P26,045.343. Lastly, the monthly payment for 1 year is P43,837.11192.

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