4. Find the monthly payment for the loan. (Round your answer to the nearest cent.)
$700 loan for 12 months at 15%
5. Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $128,000 home bought with a 20% down payment and the balance financed for 30 years at 8.5%
6. Find the monthly payment for the loan. (Round your answer to the nearest cent.)
Finance $550,000 for a warehouse with a 10.50% 30-year loan.
4. P = Po*r*t/(1-(1+r)^-t))
Po = $700
r = (15%/12)/100% = 0.0125 = Monthly %
rate expressed as a decimal.
t = 12 Months.
Plug the above values into the given Eq
and get:
P = 758.17
Monthly payment = P/12
5. Po = 0.80 * 128,000 =
t = 30yrs * 12mo/yr = 360 mo.
Answer: P = $283,452.37; $787.37/mo.
Use same Eq and procedure as prob. #4.
6. Use same Eq and procedure as prob. 4
and 5.
Answer: P = 1,811,183.3
4. P = Po*r*t/(1-(1+r)^-t))
Po = $700
r = (15%/12)/100% = 0.0125 = Monthly %
rate expressed as a decimal.
t = 12 Months.
Plug the above values into the given Eq
and get:
P = 758.17
Monthly payment = P/12
5. Po = 0.80 * 128,000 =
t = 30yrs * 12mo/yr = 360 mo.
Answer: P = $283,452.37; $787.37/mo.
Use same Eq and procedure as prob. #4.
6. Use same Eq and procedure as prob. 4
and 5.
Answer: P = $1,811,183.35; $5031.07/mo.
Thank Ms Sue
To find the monthly payment for a loan, you can use the formula for calculating the monthly payment of a loan. The formula is:
Monthly Payment = (Principal * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate) ^ -Number of Payments)
Where:
- Principal is the loan amount
- Monthly Interest Rate is the annual interest rate divided by 12 (to convert it to a monthly rate)
- Number of Payments is the total number of payments over the loan term
Let's calculate the monthly payments for each of the given scenarios:
4. For a $700 loan for 12 months at 15%:
Principal (P) = $700
Annual Interest Rate (R) = 15%
Monthly Interest Rate (r) = R/12 = 0.15/12 = 0.0125
Number of Payments (n) = 12
Using the formula:
Monthly Payment = (P * r) / (1 - (1 + r) ^ -n)
= (700 * 0.0125) / (1 - (1 + 0.0125) ^ -12)
≈ $63.14 (rounded to the nearest cent)
Therefore, the monthly payment for this loan is approximately $63.14.
5. For a $128,000 home bought with a 20% down payment and the balance financed for 30 years at 8.5%:
Principal (P) = $128,000 - 20% of $128,000 = $128,000 - $25,600 = $102,400
Annual Interest Rate (R) = 8.5%
Monthly Interest Rate (r) = R/12 = 0.085/12 = 0.007083
Number of Payments (n) = 30 years * 12 payments per year = 360
Using the formula:
Monthly Payment = (P * r) / (1 - (1 + r) ^ -n)
= (102,400 * 0.007083) / (1 - (1 + 0.007083) ^ -360)
≈ $787.67 (rounded to the nearest cent)
Therefore, the monthly payment for this loan is approximately $787.67.
6. For financing $550,000 for a warehouse with a 10.50% 30-year loan:
Principal (P) = $550,000
Annual Interest Rate (R) = 10.50%
Monthly Interest Rate (r) = R/12 = 0.105/12 = 0.00875
Number of Payments (n) = 30 years * 12 payments per year = 360
Using the formula:
Monthly Payment = (P * r) / (1 - (1 + r) ^ -n)
= (550,000 * 0.00875) / (1 - (1 + 0.00875) ^ -360)
≈ $4,968.65 (rounded to the nearest cent)
Therefore, the monthly payment for this loan is approximately $4,968.65.