Question

Syafik borrowed RM150,000 from ABC Bank for 5 years at an interest rate of 12% compounded monthly. How much is his monthly loan payment?

Answer 1

$N=5\times 12=60$ (The Bond is for 5 years, but as it is a monthly payment so multiplied by 12)

$PV=-150,000$ (The borrowed money is $\$$ 150,000)

$FV=0$ (The loan will be paid in full)

$I/Y=12/12=1$ (Yearly rate is 12$\%$ , as monthly, so divided by 12)

$CPT+PMT=\$3,336.66$

The monthly loan payments will be $\$3,336.66$