What would be the monthly payment on a $90,000 mortgage at a rate of 7.5% interest for
30 years?
Try this online calculator
http://www.mortgagecalculator.org/
set the tax rate to zero.
or
i = .075/12= .00625
solve for x
90000 = x[1 - 1.00625^-360]/.00625
I got 629.29
(the online calculator got the same thing)
thank you so much for that online calculator. it is very helpful
To calculate the monthly payment on a mortgage, you can use a formula called the Mortgage Payment Formula. The formula takes into account the principal amount, the interest rate, and the loan term.
The formula is:
M = P [i(1 + i)^n] / [(1 + i)^n - 1]
Where:
M = Monthly payment amount
P = Principal amount (the amount borrowed)
i = Monthly interest rate (annual interest rate divided by 12)
n = Number of payments (loan term multiplied by 12)
Let's calculate the monthly payment for the given mortgage:
Principal amount (P): $90,000
Annual interest rate: 7.5%
Loan term: 30 years
First, we need to convert the interest rate to a monthly rate:
i = 7.5% / 100 / 12 = 0.00625
Next, we need to convert the loan term to the number of payments:
n = 30 years * 12 = 360 months
Now, we can substitute these values into the formula:
M = $90,000 * [0.00625(1 + 0.00625)^360] / [(1 + 0.00625)^360 - 1]
Using a calculator or spreadsheet software, you can solve this equation to find the monthly payment amount.
The result will be the monthly payment required to pay off a $90,000 mortgage over 30 years at an interest rate of 7.5%.