Engineering Board Exam Reviewer · Loan Amortization · medium
For the loan of P500,000 at 12% compounded monthly over 60 months, find the outstanding balance right after the 24th payment.
- P233,066.63
- P334,862.41
- P400,400.06
- P236,273.71
Answer
B. P334,862.41
Solution
The balance equals the present worth of the 36 remaining payments: B=A(P/A,0.01,36)=11,122.22(30.1075)=P334,862.41.
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