Mrs. Lazada is convince to invest to an insurance company with 4% interest compounded annually and the maturity of 10 years. The investment can be partially or fully withdrawn any time. What is the present value withdrawable of her investment after maturity if she withdraws Pl0,000 on her 3rd year, PS,000 on her 4th year and P20,000 on her 8 year? Assume she pays P20,000 yearly

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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.