what is the monthly payment on a loan of 250,000 with 6% interest that compounds monthly for 30 years
how much will be owed in 5 yrs
how much will be owed in 10 years
The monthly payment will be $1488.
Use an amortization calculator such as
http://www.google.com/ig?utm_source=en-ha-na-us-sk&utm_medium=ha&referrer=ign
Make that $1499 monthly payment.
After 5 years, the loan principal will be $229,202
After 10 years, the loan principal will be $209,583
To calculate the monthly payment on a loan, you can use the formula for a fixed-rate mortgage:
M = P \frac{r(1+r)^n}{(1+r)^n-1}
Where:
M = Monthly payment
P = Principal amount (loan amount)
r = Monthly interest rate (annual interest rate divided by 12)
n = Total number of monthly payments
To find the monthly payment on a loan of $250,000 with 6% interest that compounds monthly for 30 years:
Step 1: Convert the annual interest rate to a monthly interest rate. Divide 6% by 100 to get 0.06, then divide by 12 to get 0.005 (monthly interest rate).
Step 2: Calculate the total number of monthly payments. Multiply 30 years by 12 months to get 360 (total number of monthly payments).
Step 3: Plug the values into the formula:
M = 250,000 \frac{0.005(1+0.005)^{360}}{(1+0.005)^{360}-1}
Using a calculator, the monthly payment comes out to be approximately $1,498.88 per month.
To find out how much will be owed in 5 years, you need to calculate the remaining balance on the loan after 5 years.
Step 1: Calculate the total number of payments made in 5 years. Multiply 5 years by 12 months to get 60 (total number of payments).
Step 2: Calculate the remaining balance using the formula:
Remaining Balance = P \frac{(1+r)^n - (1+r)^p}{(1+r)^n-1}
Where:
P = Principal amount (loan amount)
r = Monthly interest rate
n = Total number of monthly payments
p = Total number of payments made
Plugging in the values:
Remaining Balance = 250,000 \frac{(1+0.005)^{360} - (1+0.005)^{60}}{(1+0.005)^{360}-1}
Using a calculator, the remaining balance after 5 years comes out to be approximately $218,045.92.
To find out how much will be owed in 10 years, you can follow the same process as above, but using 10 years instead of 5.
Remaining Balance = 250,000 \frac{(1+0.005)^{360} - (1+0.005)^{120}}{(1+0.005)^{360}-1}
Using a calculator, the remaining balance after 10 years comes out to be approximately $193,174.13.