Question

A debt of P25,000 with interest at the rate of 8% compounded monthly is to be amortized by 5 equal
payments at the end of each month, the first payment is to be made after 1 year. Find the monthly
payment and construct an amortization schedule.

Answer 1

$C_c=F_c+P_{o,m}$

$F_c= initial \space debt$

and 

$p_{o,m}=A/i$

$i=interest =8\%$

$P_o,m=2777777.778$

$C_c=(25000\times5)+2777777.778$

$C_c=2902777.78\space answer$