Contractual loan amount 60,000 origination fees of 3% Time period for loan is 5 years and and interest rate is 12 % payed annualy.Calculate effective interest rate and show your working

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Q: Did did the principal became 25600?

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Q: contract of sale

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.