What is the monthly payment of $200,000 is financed for 15 years at 7.5%?
To calculate the monthly payment for a loan, you will need to use a loan payment formula or a loan calculator. The formula to calculate the monthly payment is as follows:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M = Monthly payment
P = Loan amount
r = Monthly interest rate (annual interest rate divided by 12)
n = Number of monthly payments (loan term in years multiplied by 12)
In this case, the loan amount (P) is $200,000, the loan term (n) is 15 years, and the annual interest rate (r) is 7.5%.
To calculate the monthly interest rate (r), divide the annual interest rate by 12:
r = 7.5% / 100 / 12 = 0.00625
To calculate the number of monthly payments (n), multiply the loan term by 12:
n = 15 years * 12 = 180
Now you have all the values required for the formula. Plug them in to calculate the monthly payment (M):
M = $200,000 * (0.00625 * (1 + 0.00625)^180) / ((1 + 0.00625)^180 - 1)
Once you calculate this equation, you will find the monthly payment for this loan.