Find the monthly payment for the loan. (Round your answer to the nearest cent.)
Finance $850,000 for a warehouse with a 11.50% 30-year loan.
$850,000x.1150 I don't know if I x or divide. the 30 year loan
Thank you.
Did you see these directions?
School Subject: (Examples: math, science, algebra, geography)
To find the monthly payment for a loan, you can use the formula for calculating the fixed monthly payment for a fixed-rate loan. Let's break it down step by step using the information provided.
1. Convert the interest rate from a percentage to a decimal. The given interest rate is 11.50%. To convert it to a decimal, divide it by 100: 11.50% รท 100 = 0.115.
2. Convert the loan term to months. The given loan term is 30 years. Since there are 12 months in a year, multiply the number of years by 12: 30 years x 12 months/year = 360 months.
3. Use the formula for calculating the fixed monthly payment, which is:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate) ^ (-Total Months))
In this formula:
- Loan Amount = $850,000 (the amount being financed)
- Monthly Interest Rate = 0.115 (the decimal representation of the interest rate per month)
- Total Months = 360 (the total number of months in the loan term)
Calculating the monthly payment using the formula:
Monthly Payment = (850,000 * 0.115) / (1 - (1 + 0.115) ^ (-360))
With these values plugged into the formula, you can use a calculator or spreadsheet software to evaluate the equation and find the final result. The monthly payment for the loan would be $8,497.66 (rounded to the nearest cent).