Alson's Properties is a local Real Estate developer which sells high end subdivision lots. Iconic projects of there are Ladislawa, and Laz Terazas. Suppose you want to purchase a lot on their new projectcalled Northtown priced at 25,000 php per sq.m. located in Mandug, how much will be your total monthly amortization payments if you were to purchase a 200sq. m. lot at an interest rate of 5% compounded monthly if the payment period is good for 20 years at 0% down payment. How much more will it be if you consider an additional 12% VAT and 200,000 transfer fee for the purchase?

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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.

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