Solution: How much must you pay monthly to amortize the loan within a period of 10 years?

If you obtain a loan of P1M at the rate of 12% compounded annually in order to build a house, how much must you pay monthly to amortize the loan within a period of 10 years?

How much must you pay monthly to amortize the loan within a period of 10 years?

Problem Statement: ME Board October 1994

If you obtain a loan of P1M at the rate of 12% compounded annually in order to build a house, how much must you pay monthly to amortize the loan within a period of 10 years?

  • A. P13,994.17
  • B. P14,801.12
  • C. P13,720.15
  • D. P14,078.78

Problem Answer:

You must pay P13,994.17 monthly to amortize the loan within a period of 10 years.

Solution:

Latest Problem Solving in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

More Questions in: Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)

Online Questions and Answers in Engineering Economics (Annuity, Depreciation, Bonds, Breakeven, etc.)


Search! Type it and Hit Enter


We educate thousands of students a week in preparation for their licensure examinations. We provide professionals with materials for their lectures and practice exams. To help us go forward with the same spirit, contribution from your side will highly appreciated. Thank you in advance.


Post a Comment

Contact Form

Name

Email *

Message *

Powered by Blogger.
Javascript DisablePlease Enable Javascript To See All Widget
Real Time Web Analytics