Engineering Board Exam Reviewer · Loan Amortization · easy
A loan of P500,000 at 12% compounded monthly is repaid by equal monthly payments over 5 years. Find the monthly payment.
- P11,122.22
- P13,333.33
- P11,558.74
- P8,333.33
Answer
A. P11,122.22
Solution
i=0.12/12=0.01 and n=60. A=P(A/P,i,n)=500,000≤ft[ 0.011-1.01-60 ]=500,000(0.022244)=P11,122.22.
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