# Maths Check

posted by
**Jen**
.

Can Please someone check as per below I posted this yesterday and Drwls Answered and I post back the solution.

Thanks

Amortization of a $1000 Loan

Interest Monthly payment

rate

15yr 20yr 25yr 30yr

9.5% $10.45 $9.33 $8.73 $8.41

10.0% $10.75 $9.66 $9.09 $8.78

10.5% $11.06 $9.99 $9.45 $9.15

11.0% $11.37 $10.33 $9.81 $9.53

11.5% $11.69 $10.66 $10.16 $9.90

12.0% $12.01 $11.01 $10.53 $10.29

12.5% $12.33 $11.36 $10.90 $10.67

13.0% $12.66 $11.72 $11.28 $11.06

a. What is the monthly payment on a 25-year loan of $125,000 if the

annual interest is 9.5%

b. What are the total interest charges over the life of the loan?

For Further Reading

Maths - drwls, Wednesday, March 12, 2008 at 3:00pm

This looks like an exercise in Table reading, but the table is hard to read.

The 25-yr load entry in the 9.5% interest row is $8.73. That would be the monthly payment. 25 years is 300 months, so the total amount repaid would be $8.73 times that, or $2619.00

Of that amount, $1619.00 would be interest charges over the life of the loan. The rest is the return of the $1000 principal.

Maths - Jen, Wednesday, March 12, 2008 at 4:59pm

What is the monthly payment on a 25-year loan of $125,000 if the

annual interest is 9.5%

So for the 125,000 loan

monthly payment will be 8.73*125000/1000 = 1091.25

What are the total interest charges over the life of the loan?

1091.25*300 = 327375

Total Interest = 327375-12500 = 202375

Is this correct