Answer to Question #271903 in Financial Math for elea

Question

The Employee's Union charges 10% interest for short-term loans. If I borrow P20,000 and must pay an amount of P2,000 monthly, what is the length of my loan?

Answer 1

Amount borrowed $=20,000$

Interest ${10\over 100}\times20,000=2,000$

Amount to be repaid$=20,000+2,000=22,000$

Monthly repayment $=2,000$

Length of  loan $={22,000\over 2,000}=11$ Months