A house buyer borrows RM 50000 from a bank to buy a house which costs RM 70000 .The rate of interest charged by the bank is 9% per annum ,and is calculated based on the amount outstanding at the begining of each year . The house buyer is required to repay his loan in monthly installments for a period of 15 years . Assuming that the rate of interest is fixed for the entire duration of the loan , find the amount per month he has to repay the bank ?
My attempt :
It forms a sequence as follows :
The 15th term ,
which is the amount he has to pay by the end of 15 years .
Thus , every month he has to pay
My answer is obviously wrong . I wonder where my mistake is .. Thanks to the one who help me out ..