Engineering Board Exam Reviewer · Loan Amortization · medium
A loan of P300,000 at 12% compounded monthly is repaid by P4,000 monthly payments. About how many months are needed?
- 75 months
- 300 months
- 120 months
- 139.3 months
Answer
D. 139.3 months
Solution
(1+i)-n=1-Pi/A=1- 300,000(0.01)4,000=0.25 n=- 0.25/ 1.01=139.32 months.
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