What isrequired monthly payment for 30-years $100,000 mortgage at 12% APR.
What formula?
i= .12/12 = .01
n = 12(30) = 360
Paym( 1 - 1.01^-360)/.01 = 100000
paym(97.218331..) = 100000
payment = $1028.61
To calculate the required monthly payment for a mortgage based on the loan amount, the annual interest rate, and the loan term, you can use the formula for calculating the monthly payment for an amortizing loan.
The formula is:
M = P * (r(1+r)^n) / ((1+r)^n - 1)
Where:
- M is the monthly payment
- P is the principal loan amount
- r is the monthly interest rate (12% APR divided by 12 months)
- n is the total number of monthly payments (30 years * 12 months)
Let's plug in the values into the formula:
P = $100,000
APR = 12%
r = 12%/12 = 1% = 0.01 (convert APR to monthly rate)
n = 30 years * 12 months = 360 months
M = $100,000 * (0.01*(1+0.01)^360) / ((1+0.01)^360 - 1)
Now, you can calculate the required monthly payment using a calculator or spreadsheet software:
M ≈ $1,028.61
So, the required monthly payment for a 30-year $100,000 mortgage at 12% APR is approximately $1,028.61.