Concepcion bought one laptop worth Php20, 000

Economics Nov 07, 2020

Concepcion bought one laptop worth Php20, 000. She paid Php3, 000 as down payment and the remaining balance will be paid on instalment basis for 18 months of periodic payments at 12% interest rate. How much are the monthly periodic payments?

Expert Solution

EMI = [P x R x (1+R)^N]/[{(1+R)^N}-1]

Here P is the Principal Loan Amount, R is the Rate of Interest (on a monthly basis), and N is the Tenure or the loan duration in months.

Here cost is = Php 20000

Down payments = Php 3000

Loan a principal amount= Php 17000

EMI = [17000x 12/(100*12) x (1.01)^18]/[{(1.01)^18}-1]

Monthly periodic instalment = Php 1036.69

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