Mr Akmal Al Harbi who purchased home insurance. The total price was 3500SAR but he is paying this over 12 months at an interest rate of 3% per annul.

So, what is the question? You want to know the monthly payment? Or, the total cost of his home insurance? At any rate, this is the formula you would use to calculate the monthly payment:

 

PMT =PV. R. [1 + R]^N / [1 + R]^N - 1. Will assume 3% is compounded monthly.

PMT =3,500 .0.0025[1 + 0.0025]^12 / [1 + 0.0025]^12 - 1

PMT =8.75 x            [1.0304160...... / 0.0304160...]

PMT =8.75 x                         33.8774795.....

PMT =296.43 SAR - The monthly payment.

296.43 x 12 =3,557.16 SAR - total cost of his home insurance.