find the monthly payment for the loan. Finance $ 750.000 for a warehouse with a 9.50% 30 year loan.
To find the monthly payment for a loan, you can use the formula for calculating the monthly payment on a fixed-rate mortgage loan, which is:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Principal amount (loan amount)
r = Monthly interest rate
n = Total number of payments (loan term in months)
In this case, you have the following information:
Principal amount (P) = $750,000
Annual interest rate = 9.50%
Loan term = 30 years
First, you need to convert the annual interest rate to a monthly interest rate by dividing it by 12 (12 months in a year) and then converting it to a decimal:
Monthly interest rate (r) = (9.50% / 12) / 100 = 0.00792
Next, you need to calculate the total number of payments by multiplying the loan term (30 years) by 12 (months in a year):
Total number of payments (n) = 30 * 12 = 360
Now, you can plug these values into the formula to find the monthly payment:
M = 750,000 * (0.00792 * (1 + 0.00792)^360) / ((1 + 0.00792)^360 - 1)
By calculating this equation, the monthly payment for the loan is approximately $6,320.19.