A man's bank has offered him a loan of \$20000 payable within the year at an annual interest rate of 24%. Calculate the monthly equal payment to defray both the principal and interest payment. Prepare a loan repayment schedule segregating interest from the principal.

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1. 20,000 x 24/100 = x (interest cost)
x/12=y (monthly cost of interest)

20,000/12=? (monthly cost of repaying principal)

Add y and ? to compute monthly repayment schedule.

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posted by Reed

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