00:01
In the question it is given that an employee has obtained a loan of 10 ,000 pesos and the rate of interest is 6 % compounded annually.
00:10
Now, the payment is like he is going to pay it monthly to amortize the loan within the 10 years.
00:17
That means, in 10 years, the full loan has to be written off.
00:22
Now, here, the amount obtained through the loan, that is, the principal value, will be 10 ,000 pesos.
00:36
And it is said that he is going to pay monthly.
00:39
That means we need to find out equated monthly installment or we can say emi.
00:53
This we have to find out.
00:54
Now the rate of interest is given 6%.
00:57
So the rate per period that is per month because he is going to pay the loan monthly...