INCOME=Php 100,000

OBLIGA
Income
Php 100,000

OBLIGATION 1
Cash Price of Condo (CV)
Php 4,850,000
Area=96.4sqm
DP
Php 20% of Selling Price
PHP 970,000.00
Interest Rate
9% Compounded Monthly
m=12
0.0075000000
0.0075
t=10years
n=(12)(10)=120

Condo Maintenance= 45/sqm

Monthly Fee
PHP 4,338.00
Annual Fee
PHP 52,056.00
Electricity/month=5250
PHP 5,250.00
Electricity/ Year
PHP 63,000.00

Condo Fees/Month:
PHP 9,588.00
Total Condo Fees:
PHP 115,056.00

OBLIGATION 2
at year 10
Start setting aside money at year 5
Cash Value
PHP 350,000.00
Savings Account
Interest Rate
1.2% Compounded Monthly
m=12
0.00100000000000
0.001
Monthly Payment (R)
PHP 5,000.00

Savings
PHP 1,000,000.00
Do not want savings to fall below
PHP 50,000.00

Calculate the amount to be paid for the Down Payment. Can you
afford to take this much money out of your accounts?
DP=(0.20)(4,850,000)=Php 970,000
Yes, if you do not take more than Php 950,000 from the savings account and not

more than Php 50,000 from the checking account.

Calculate the total of the monthly payments related to the

ownership of the condominium.
Monthly Condo Maintenance=(Php 45/sqm)(96.4sqm) = Php 4338
Monthly Utilities = Php 5250
R=?
A=CV-DP= Php 4,850,000 Php 970,000= Php 3,880,000
A= R [1-(1+i)n]/i

m= 12
t=10 years
n=(12)(10)=120
By entering the necessary figures, we get, R= Php 49,150.20
Total Monthly Payments= Php 4338 +Php 5250 + Php 49,150.20 = Php 58,738.20

After you pay for the monthly expenses related to condominium

ownership (Question 2), how much do you have available to pay for other
expenses (e.g., food, transportation, clothing, entertainment, dental bills,
telephone bills, car bills, etc.)?
Money For Other Expenses= Income Monthly Payments related to condo
Money For Other Expenses= Php 100,000- Php 58,738.20= Php 41,261.80

What percent of your monthly net pay are the condominium-related

expenses?
%= Php 58,738.20/ Php 100,000
%= 58.74

Create an amortization for your mortage


With the amount you are setting aside every month for your trip to
Europe with your spouse, do you think you can save up Php350,000 in time for your
10th year anniversary?
No.
S= R [(1+i)k-1]/i
k= (12)(5)=60
R=?
S= Php 350,000
i= 0.12/12=0.001
When the figures are plugged in, S= Php 309,203.566

If your answer to Question 6 is No, how much should you set aside
every month for your trip to Europe to save up Php350,000 in time for your 10th year
anniversary? Create a sinking fund schedule for this.
S= R [(1+i)k-1]/i
S= Php 350,000
k= (12)(5)=60
R=?
S= Php 350,000
i= 0.12/12=0.001
When the figures are plugged in, R= Php 5,662.999

Do you think that, financially, you can handle the purchase of this
condominium as well as save for your Europe trip? Defend your answer.
Total Expenses per month starting at n @ 61
Php 58,738.20 + Php 5,662.999 = Php 64,401.199
I think that even by wanting both, I can handle it due to the fact that I still have about
Php 35,598.801 and no kids.