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How much should you deposit monthly in the savings entity

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Question - Today a person requires an amount of money equivalent to 100 million pesos. For this, he takes a four-year loan (main loan) that charges an interest of 23.1% NA, BV. The person expects to cancel the loan with "equal semiannual installments" (including capital and interest) with payment of interest semiannually.

To cover this obligation, the person designed a savings plan like this: deposit monthly in a financial institution for the duration of the loan in equal monthly amounts. For this reason, the entity recognizes 16% NA, CV.

NOTE: interest on savings is paid monthly

a) What is the value of the semester installments to cover the credit?

b) How much should you deposit monthly in the savings entity?

Reference no: EM132641180

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