Loan Amortization — Engineering Board Exam Practice Questions

8 free engineering board exam reviewer questions on Loan Amortization (Engineering Economics), each with the correct answer and a worked solution.

1. A loan of P300,000 at 12% compounded monthly is repaid by P4,000 monthly payments. About how many months are needed?
2. A loan of P1,000,000 at 10% compounded annually is repaid by 10 equal year-end payments. Find the total interest paid over the life of the…
3. A loan of P400,000 at 12% compounded monthly is paid by P10,000 monthly payments for 36 months, with a balloon payment due together with…
4. A loan of P100,000 at 18% compounded monthly is repaid by monthly payments of P5,000. About how many months are needed to pay it off?
5. A housing loan of P2,000,000 at 9% compounded monthly is paid in equal monthly payments over 15 years. Find the monthly payment.
6. For the same loan (P500,000, 12% compounded monthly, 60 months), how much of the 25th payment goes to interest?
7. For the loan of P500,000 at 12% compounded monthly over 60 months, find the outstanding balance right after the 24th payment.
8. A loan of P500,000 at 12% compounded monthly is repaid by equal monthly payments over 5 years. Find the monthly payment.