Use the formula or a calculator application to find the monthly payment on a home mortgage of $292.649 at 5.004% interest for 25 years.
What is the monthly payment?
i = .05004/12 = .00417
n = 25(12) = 300
let the monthly payment be p
p(1 - 1.00417^-300 )/.00417 = 292649
the monthly payment is $ 1711.48
To calculate the monthly payment on a home mortgage, you can use the formula for a fixed-rate mortgage:
M = P [i(1 + i)^n] / [(1 + i)^n - 1]
Where:
M = Monthly Payment
P = Principal Loan Amount
i = Monthly Interest Rate (annual interest rate divided by 12 and converted to decimal)
n = Number of Payments (number of years multiplied by 12)
In this case, the principal loan amount is $292,649, the annual interest rate is 5.004%, and the mortgage duration is 25 years.
First, let's convert the annual interest rate to a monthly interest rate. Divide 5.004% by 100 to convert it to a decimal: 5.004/100 = 0.05004. Then, divide this by 12 to get the monthly interest rate: 0.05004/12 = 0.00417 (rounded to 5 decimal places).
Next, calculate the number of payments by multiplying the number of years by 12: 25 years * 12 = 300 payments.
Now, substitute the values into the formula:
M = $292,649 * [0.00417(1 + 0.00417)^300] / [(1 + 0.00417)^300 - 1]
To solve this equation, you can use a calculator application:
1. Open a calculator application on your computer or smartphone.
2. Enter the value of $292,649.
3. Multiply it by the numerator of the formula: 0.00417(1 + 0.00417)^300.
4. Divide the result by the denominator of the formula: (1 + 0.00417)^300 - 1.
5. Press the equals (=) button to obtain the monthly payment.
Using this method, you will find the monthly payment on a home mortgage of $292,649 at 5.004% interest for 25 years.