Find the monthly payment for the loan. ( round your answer to the nearest cent.)
Finance $950,000 for a warehouse with a 7.50% 30 year loan
just plug in your numbers, using the amortization formula.
To find the monthly payment for a loan, you can use a formula called the loan payment formula. This formula takes into account the loan amount, the interest rate, and the loan term to calculate the monthly payment.
The loan payment formula is:
M = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
M is the monthly payment
P is the loan amount
r is the monthly interest rate (annual interest rate divided by 12)
n is the total number of payments (loan term in months)
In this case, the loan amount is $950,000, the annual interest rate is 7.50%, and the loan term is 30 years.
First, we need to convert the annual interest rate to a monthly interest rate. We divide the annual interest rate by 100 to convert it to a decimal, then divide it by 12 to get the monthly interest rate:
Monthly interest rate (r) = 7.50% / 100 / 12 = 0.0625
Next, we need to calculate the total number of payments (n). Since the loan term is 30 years, we multiply it by 12 to get the number of months:
Total number of payments (n) = 30 years * 12 = 360 months
Now we can plug in these values into the loan payment formula:
M = $950,000 * (0.0625 * (1 + 0.0625)^360) / ((1 + 0.0625)^360 - 1)
Calculating this formula will give us the monthly payment for the loan. Rounding the answer to the nearest cent, we get the final result.