# Maths Check

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Can Please someone check as per below I posted this yesterday and Drwls Answered and I post back the solution.

Thanks

Amortization of a \$1000 Loan

Interest Monthly payment
rate
15yr 20yr 25yr 30yr
9.5% \$10.45 \$9.33 \$8.73 \$8.41
10.0% \$10.75 \$9.66 \$9.09 \$8.78
10.5% \$11.06 \$9.99 \$9.45 \$9.15
11.0% \$11.37 \$10.33 \$9.81 \$9.53
11.5% \$11.69 \$10.66 \$10.16 \$9.90
12.0% \$12.01 \$11.01 \$10.53 \$10.29
12.5% \$12.33 \$11.36 \$10.90 \$10.67
13.0% \$12.66 \$11.72 \$11.28 \$11.06

a. What is the monthly payment on a 25-year loan of \$125,000 if the
annual interest is 9.5%
b. What are the total interest charges over the life of the loan?

For Further Reading

Maths - drwls, Wednesday, March 12, 2008 at 3:00pm
This looks like an exercise in Table reading, but the table is hard to read.

The 25-yr load entry in the 9.5% interest row is \$8.73. That would be the monthly payment. 25 years is 300 months, so the total amount repaid would be \$8.73 times that, or \$2619.00

Of that amount, \$1619.00 would be interest charges over the life of the loan. The rest is the return of the \$1000 principal.

Maths - Jen, Wednesday, March 12, 2008 at 4:59pm
What is the monthly payment on a 25-year loan of \$125,000 if the
annual interest is 9.5%

So for the 125,000 loan
monthly payment will be 8.73*125000/1000 = 1091.25

What are the total interest charges over the life of the loan?

1091.25*300 = 327375
Total Interest = 327375-12500 = 202375

Is this correct

• Maths Check -

I agree with your calculations

• Maths Check -

Thank You

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