What is the monthly payment on a 25-year loan of $73,700 if the annual interest rate is 10%?
P = (Po*r*t)/(1-(1+r)^-t)
Po = %73,700
r = (10%/12)/100% = 0.008333 = Monthly %
rate expressed as a decimal.
t = 25yrs. * 12mo./yr. = 300 Months.
Plug the above values into the given Eq
and get: P = $200,913.71
P/t = 200913.71/300mo = $669.71/mo.