Ordinary Annuity Compounding frequency > than 1 Mr. Ali agrees that the loan installment (PMT) should not exceed 35% of the borrower's monthly income (due to healthy Debt-Service Ratio). If the interest rate is 6% a year compounding monthly, how much can he borrow if his income is RM 10,000 a month, for a 15-years loan tenure? Answer: If Mr. Ali earns RM 10,000 a month, and he should not exceed 35% of his salary to service the loan, the maximum amount that he can borrow is RM Type your answer for a 15-years loan tenure at 6% a year interest rate, compounded monthly. (Hint: Mr. Ali will use 35% of his monthly salary to service his loan)