Answer the following question correctly refer to the given problem below and show your Complete Solution (Given, Required, Equation, Solution, Answer). Mr. Quiton loans an amount of Php 30,000.00 which is to be paid monthly for 5 years that will start at the end of 4 years , if converted monthly at 12%, how much is the monthly payment ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity      B. General Annuity C. Deferred Annuity   D. Complex Annuity 2. Compute for the interest rate per period. A. 0.01     B. 0.05     C. 0.10      D. 0.12 3. Determine the present value of the loan. A. Php 12,000.00             B. Php 30,000.00 C. Php 60,000.00             D. Php 75,000.00

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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.