Whats the monthly principal and interest payment for a mortgage with a financed amount of $81,000 at 9% for 25 years?
assuming the rate is 9% per annum compounded monthly
i = .09/12 = .0075
81000 = paym( 1 - 1.0075^-300)/.0075
....
payment = 679.75
Thanks
To calculate the monthly principal and interest payment for a mortgage, you can use the formula for calculating the fixed monthly payment on a loan. This formula takes into account the loan amount, the interest rate, and the loan term.
The formula for calculating the monthly payment is:
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)
Let's calculate the monthly principal and interest payment for your mortgage:
Loan amount (P) = $81,000
Annual interest rate = 9%
Loan term (n) = 25 years
First, let's calculate the monthly interest rate (r):
r = 9% / 100 / 12 = 0.0075
Now, let's calculate the number of monthly payments (n):
n = 25 years * 12 = 300
Using the formula, we can calculate the monthly payment (M):
M = $81,000 * 0.0075 * (1 + 0.0075)^300 / ((1 + 0.0075)^300 - 1)
By plugging these values into a calculator or spreadsheet program, you'll find that the monthly principal and interest payment for the mortgage is approximately $668.46.