math-Ms Sue please help

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What is the monthly payment on a 25-year loan of $73,700 if the annual interest rate is 10%?

  • math-Ms Sue please help -

    First figure the interest.

    I = PRT

    Add that to the principal.

    Multiply by 25 * 12.

    What do you get?

  • Correction -

    Divide the interest plus the principal by the number of months.

  • math-Ms Sue please help -

    I am pretty sure that for loans lasting 25 years, compound interest would be used.
    i = .10/12 = .008333...
    n = 25(12) = 300

    payment( 1 - 1.008333^-300)/.0083333) = 73700
    I get payment = $ 669.71

  • math-Ms Sue please help -

    Thanks...that's what I got

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