Posted by **Jennifer** on Tuesday, June 24, 2014 at 8:26pm.

What is the monthly payment on a 25-year loan of $73,700 if the annual interest rate is 10%?

- math-Ms Sue please help -
**Ms. Sue**, Tuesday, June 24, 2014 at 8:28pm
First figure the interest.

I = PRT

Add that to the principal.

Multiply by 25 * 12.

What do you get?

- Correction -
**Ms. Sue**, Tuesday, June 24, 2014 at 8:36pm
Divide the interest plus the principal by the number of months.

- math-Ms Sue please help -
**Reiny**, Tuesday, June 24, 2014 at 11:05pm
I am pretty sure that for loans lasting 25 years, compound interest would be used.

i = .10/12 = .008333...

n = 25(12) = 300

payment( 1 - 1.008333^-300)/.0083333) = 73700

I get payment = $ 669.71

- math-Ms Sue please help -
**Jennifer**, Wednesday, June 25, 2014 at 9:04am
Thanks...that's what I got

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