SOLUTION: Suppose the monthly amortization for a loan of a certain company is 1,000,000.00 Php with an interest rate of 15% a year. 1.) What is the monthly amortization for a period of 7

Algebra ->  Finance -> SOLUTION: Suppose the monthly amortization for a loan of a certain company is 1,000,000.00 Php with an interest rate of 15% a year. 1.) What is the monthly amortization for a period of 7       Log On


   

Question 1187678: Suppose the monthly amortization for a loan of a certain company is 1,000,000.00 Php with an interest rate of 15% a year.
1.) What is the monthly amortization for a period of 7 years?
2.) What is the interest earned for seven years?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
the loan is for 1,000,000 php.
the yearly interest rate is 15%.
the number of years is 7.

the interest rate is compounded monthly.
the time periods are in months.

the interest rate per month is 15/12 = 1.25%.
the number of months is 7 * 12 = 84.

use a financial calculator, such as the ti-ba-ii to get a payment of 19296.75474 at the end of each month.

this is equal to 19296.75 rounded to the nearest penny.

using the online calculator at https://arachnoid.com/finance/index.html, i get the same answer rounded to the nearest penny.

here's what the output of the calculator looks like.



inputs are everything but pmt.
output is pmt.