A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal payments, one at the end of 15 years and the other at the end of 20 years. The interest rate is 8%, compounded annually. What is the amount of the two equal payments?
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.
A series of 10 annual payments of Php 200, 000.00 is equivalent to two equal
payments, one at the end of 15 years and the other at the end of 20 years.
The interest rate is 8%, compounded annually. What is the amount of the two
equal payments?
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