# Solution: What is the monthly amortization?

A man purchased on monthly installment a P100,000 worth of land. The interest rate is 12% nominal and payable in 20 years. What is the monthly amortization?

#### Problem Statement: EE Board October 1997

A man purchased on monthly installment a P100,000 worth of land. The interest rate is 12% nominal and payable in 20 years. What is the monthly amortization?

• A. P1,101.08
• B. P1,202.08
• C. P1,303.08
• D. P1,404.08

The monthly amortization is P1,101.08.

Solution:

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