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

First figure the interest.

I = PRT

Multiply by 25 * 12.

What do you get?

• Correction -

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

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

Thanks...that's what I got

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