Professional Documents
Culture Documents
A. Retail Transaction
Retail Purchase Amount : Php20,000
Interest Charge per Month : 2.75% computed based on average daily balance using 30 days per month (or 33% annually)
Monthly Effective Interest Rate : 2.72%
Statement Cut-off Date : Every 1st of the month
Payment Due Date : Every 25th of the month
Minimum Payment Due : 5% of the Total Statement Balance or Php500, whichever is higher
TOTAL
STATEMENT RETAIL OUTSTANDING
PAYMENT INTEREST STATEMENT
MONTH PURCHASE PRINCIPAL BALANCE
BALANCE
1 20,000.00 20,000.00 20,000.00
2 1,000.00 544.50 19,000.00 19,544.50
3 977.23 532.10 18,567.28 19,099.37
4 954.97 519.98 18,144.41 18,664.39
5 933.22 508.14 17,731.17 18,239.30
6 911.97 496.57 17,327.34 17,823.90
7 891.20 485.26 16,932.71 17,417.96
8 870.90 474.20 16,547.07 17,021.27
9 851.06 463.40 16,170.21 16,633.61
10 831.68 452.85 15,801.93 16,254.78
11 812.74 442.54 15,442.04 15,884.58
12 794.23 432.46 15,090.35 15,522.81
Assumptions :
a. Retail purchase made on the statement cycle date
b. No other purchases/cash advance/installment transactions made for 12 months.
c. No other charges/fees incurred during the 12 months.
OUTSTANDING
STATEMENT CASH ADVANCE CASH TOTAL STATEMENT
PAYMENT INTEREST PRINCIPAL
MONTH AMOUNT ADVANCE FEE BALANCE
BALANCE
C. Installment Loan
The computation/schedule uses the diminishing balance method, where the interest per installment period shall be computed based on the
outstanding balance of the installment loan at the beginning of each installment period. This means that the interest portion of the monthly
amortization will be higher during the early part of the installment term and lower towards the end of the installment term.