Answer:
Monthly installment= $168.77
Step-by-step explanation:
Loan amortization is a loan repayment arrangement where a loan is repaid using a series of equal installments over the years of the loan. Each installment covers the interest due and a portion of the principal balance
The monthly installment = Loan amount/monthly annuity factor
Annuity factor = (1 - (1+r)^(-n))/r)
r - monthly interest rate, n- number of months
Monthly interest rate = 6%/12= 0.5%
Number of months = 15× 12 = 180
Annuity factor = ( 1-(1.005)^(-180))/0.005
= 118.50
Monthly installment = 20,000/168.771
= $168.77
Answer:
Monthly installment= $168.77