Mr. Trafalgar Law purchased a house and lot worth P4,000,000. He paid a down payment of P1,500,000. He plans to amortize the loan of P2,500,000 by paying semi-annually for 5 years. The interest rate is 12% compounded semi-annually. (Round-off your FINAL answers to two decimal places) How much is the monthly navment?

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.