# 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?

#### 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

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

Solution:

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 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. Option 1 : \$5 USD Option 2 : \$10 USD Option 3 : \$15 USD Option 4 : \$20 USD Option 5 : \$25 USD Option 6 : \$50 USD Option 7 : \$100 USD Option 8 : Other Amount