A loan was to be amortized by a group of four end-of-year payments. The initial payment was to be P5,350 and will increase by P620 every year thereafter. But the loan was renegotiated to provide for the equal payment rather than uniformly varying sums. If the interest rate of the loan was 15% compounded semi-annually, what was the annual payment?
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
(Please draw cash flow diagram and don't use excel)
A loan was to be amortized by a group of four end-of-year payments. The initial payment was to be P5,350 and will increase by P620 every year thereafter. But the loan was renegotiated to provide for the equal payment rather than uniformly varying sums. If the interest rate of the loan was 15% compounded semi-annually, what was the annual payment?
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