A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression. The initial payment was to be P10,000 and the difference between successive payment was to be P1,000. If the loan is to be paid in a single payment after 3 years what should the single payment be? The interest of the loan is 10% pa. Show your cash flow diagram.

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A: Equivalent Annual Cash Flow = PV x r / [1 - {1 / (1 + r)^n}]

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A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A: MS-Excel --> Formulas --> Financials --> FV

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Q: Draw a cash flow diagram

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Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.