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Directions: Analyze and solve the problem. Use a separate sheet of paper for your solution and be guided by the rubric shown below. A client is applying for a loan amounting to P400,000 in the bank where you are working. You explained to the client that the bank is charging 9% interest rate per annum and that payment is to be made monthly. The client asked you how much will the monthly payment be if the loan will last for a.) 2 years b.) 3 years c.) 4 years so that he will have an idea how much will be deducted from his salary. Your task is to compute and explain to the client the monthly amortization, the total amount accumulated and total interest to be paid after a.) 2 years b.) 3 years c.) 4 years. Which do you think would be a better choice for the client considering the repayment term (2, 3 or 4 years) and the monthly salary deduction? Explain why?
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