Mr. Barela’s monthly amortization is ₱3,500.00, payable at the end of each month. His house and lot will be fully paid for after 20 years. If the amount of house and lot is 5% compounded monthly, how much is its maturity value?

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A:

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.