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U.S. and Global Economics: Involving MATH

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PLZZZ.. Help I just don't understand how to calculate this

A landlord wants to acquire an additional apartment building for $250,000. The new building contains eight apartment units, which will each rent for $500 per month. The bank is willing to loan the landlord the money for a long-term, 30-year loan at a 5.5 percent interest rate. Calculate the monthly payment, and explain whether taking this loan for the new building is a smart business decision.

  • U.S. and Global Economics: Involving MATH - ,

    I= PRT
    250,000 * 0.05 * 30

    I = 375,000

    250,000 + 375,000 = 625,000

    625,000 / 360 = 1,736.11 monthly payment

    Compare the monthly payment with the amount of rent he expects to receive each month.

  • U.S. and Global Economics: Involving MATH - ,

    thx so much!!!!!

  • U.S. and Global Economics: Involving MATH - ,

    You're welcome.

  • objection - U.S. and Global Economics: Involving MATH - ,

    Ms Sue used the concept of simple interest.
    This is a longterm annuity type question and has to be done with compound interest.
    i = .055/12 = .0045833.... , n = 12(30) = 360

    let the monthly payment be P
    250000 = P( 1 - 1.00458333...^-360)/.00458333..
    P = 1419.47

  • U.S. and Global Economics: Involving MATH - ,

    ok, thx

  • U.S. and Global Economics: Involving MATH - ,

    kuch vi nai yar

  • U.S. and Global Economics: Involving MATH - ,

    わかりません

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