Subjects finance, algebra

Monthly Amortization Ef7F79

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1. **Problem statement:** A bank loan of 60000 kronor is to be amortized with equal monthly payments over 10 years. How much should be amortized each month? 2. **Formula and explanation:** For equal monthly amortization (straight-line amortization), the total loan amount is divided evenly over the total number of months. 3. **Calculate total months:** $$10 \text{ years} \times 12 \text{ months/year} = 120 \text{ months}$$ 4. **Calculate monthly amortization:** $$\frac{60000}{120} = 500$$ 5. **Interpretation:** Each month, 500 kronor should be amortized to fully repay the loan in 10 years. **Final answer:** The monthly amortization amount is **500 kronor**.