Old MathJax webview

The Institute of Housing and Urbanism offers savings and loan contracts for investment projects in housing. The scheme of these contracts is based on a two-part system: a savings for several years and a superior loan with a fixed interest rate of 9% per year (especially the credit part, not the savings). The amounts of the contracts are in multiples of one million pesos, an amount that is delivered at the end of the savings period.

One of these plans is the 10-12, in which a fixed monthly payment is saved for 10 years and a loan is paid for the following 12 years. Normally 25% of the contract is saved and at the end of the saving 75% is loaned.

The savings and loan payment installments for contract 10-12 have already been calculated, for every million pesos and are as follows:

Monthly savings fee: $ 2,417.00 Monthly loan payment fee: $ 8,540.00

What is the real interest rate paid for the credit of these contracts?

Take a 12% annual return for savings.

If the answer can be similar to the procedures in the book by Leland Blank and Anthony Tarquin it would be perfect

There is no more