Answer to Question #251179 in Engineering for cancelmoko

Question

Amortization

Suppose you borrowed ₱200,000 from a local bank having an interest of 8% per annum, compounded

monthly. If the debt was to be amortized by 36 equal payments and the first payment is to be made at

the end of the first month, (a) determine the monthly payment, and (b) construct an amortization

schedule/table.

Answer 1

an interest of 8% per annum - an interest 8/12 = 0.0066667% per month

$200.000 \Rho = C[1 - \large\frac{1}{1.0066667^{36}}$$] / 0.0066667$ $\to C = 6,267.27 \Rho$