find the montly payment needed to amortize principal and interest for a 130000 fixed rate mortgage with a 10.5% rate and a 30 year term
just plug those numbers into your amortization formula.
i = .105/12 = .00875
n = 12(30) = 360
payment ( 1 - 1.00875^-360)/.00875 = 130000
payment = $1189.16
To find the monthly payment needed to amortize principal and interest for a mortgage, you can use the formula for the monthly payment on a fixed-rate mortgage:
M = P * (r * (1+r)^n) / ((1+r)^n - 1)
Where:
M = Monthly payment
P = Principal amount (loan amount)
r = Monthly interest rate (annual interest rate divided by 12)
n = Total number of payments (number of years multiplied by 12)
Let's plug in the given values:
Principal amount (P) = $130,000
Annual interest rate = 10.5%
Monthly interest rate (r) = 10.5% / 12 = 0.00875
Total number of payments (n) = 30 years * 12 months = 360
Now, substitute the values into the formula:
M = 130,000 * (0.00875 * (1+0.00875)^360) / ((1+0.00875)^360 - 1)
Using a calculator, compute the right side of the equation to find the monthly payment (M). The result will give you the amount needed to amortize the principal and interest for the 30-year fixed-rate mortgage.