FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Payment of loans:
Calculate the value of the monthly payments for a loan of ¢300,000.00 in a credit for the purchase of land, for 25 years with an interest of 6.20%. Calculate each payment at the end of the finished.
Expert Solution
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Step 1
Monthly Installments - - It includes a portion of principle payment along with Interest.
Monthly Installment can be calculated as = (Amount Borrowed x r x (1+r)^n) / (1+r)^n-1
Here r is the monthly interest rate
n = number of months
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