please tell me what to do to get the answer thanks :)
The monthly payment on a $90,000 mortage at a rate of 7.5% for 30 years
There's probably a formula for this calculation, but I don't know it. However, this site will figure it for you.
http://www.bankrate.com/brm/mortgage-calculator.asp
please tell me what to do to get the answer thanks :)
The monthly payment on a $90,000 mortage at a rate of 7.5% for 30 years
R = Pi/1 - (1 + i)^-n] where R = the monthly payment, P the ampunt borrowed, i = the periodic decimal interest rate and n = the number of interest bearing periods.
Therefore, P = 90,000(.00625)/[1 - (1.00625)^-360] = $629.29.
Thanks, Tchrwill.
To calculate the monthly payment on a mortgage, you will need to use a loan amortization formula or a mortgage calculator. Here are the steps to find the answer:
1. Convert the annual interest rate to a monthly interest rate: Divide the annual interest rate by 12 to get the monthly interest rate. In this case, 7.5% divided by 12 equals 0.625%.
2. Convert the loan term to months: Multiply the number of years by 12 to get the total number of months. In this case, 30 years multiplied by 12 equals 360 months.
3. Plug the values into the mortgage formula or use a mortgage calculator: The formula to calculate the monthly payment on a mortgage is:
M = P * (r(1+r)^n) / ((1+r)^n-1)
Where:
M = Monthly payment
P = Loan amount
r = Monthly interest rate (in decimal form)
n = Total number of payments
Using this formula, or using a mortgage calculator online, you can calculate the monthly payment on a $90,000 mortgage at a rate of 7.5% for 30 years.