How ugh are monthly payments on 100000 for 36 mo, at 9% ?
(100,000 * 1.09 * 3) / 36 = $_______
I think we should use compound interest here.
i = .09/12 = .0075
let the payment be p
p( 1 - 1.0075^-36)/.0075 = 100000
p = $3179.97
To calculate the monthly payments on a loan, you can use a formula known as the Amortization Formula. The formula is:
M = P * (r * (1+r)^n) / ((1+r)^n - 1)
Where:
M = Monthly payment
P = Loan principal (the amount borrowed)
r = Monthly interest rate (Annual interest rate divided by 12)
n = Number of monthly payments
In this case, you have a loan principal of $100,000, a loan term of 36 months, and an annual interest rate of 9%.
First, calculate the monthly interest rate:
r = 9% / 12 = 0.09 / 12 = 0.0075
Next, calculate the number of monthly payments:
n = 36
Now, substitute the values into the formula:
M = 100,000 * (0.0075 * (1+0.0075)^36) / ((1+0.0075)^36 - 1)
Simplifying the formula:
M = 100,000 * (0.0075 * 1.0075^36) / (1.0075^36 - 1)
Calculating the result:
M ≈ 3,203.811
Therefore, the approximate monthly payment on a $100,000 loan for 36 months at a 9% interest rate would be around $3,203.81.