monthly payments on a $100000 loan at 5.5% annual interest amortized over 100 years will be close to?
Assume compounding yearly, then monthly payment will be 1/12 of the yearly payment.
The payment P per period over n periods for an amortized amount A at annual interest rate of R (written as 1.05 for 5%) is
ARn=P(Rn-1)/(R-1)
A=100000
R=1.055
n=100
P=ARn(R-1)/(Rn-1)
=$5526.13
Monthly payment = $5526.13/12
=$460.51
Compounded monthly:
A=100000
R=1.00458333
n=1200
P=$460.24
A table cost $3,780 in cash will purchase table in 36 monthly payments. A 13% per year finance charge will be assessed on the amount Financed find finance charge installment price and the monthly payment
To calculate the monthly payments on a loan, we can use an amortization formula. The formula for calculating the monthly payment on an amortizing loan is:
P = (r * A) / (1 - (1 + r)^(-n))
Where:
P = monthly payment
A = loan amount
r = monthly interest rate
n = total number of monthly payments
First, let's calculate the monthly interest rate. The annual interest rate is given as 5.5%. To convert it into a monthly rate, divide it by 12 and express it as a decimal:
Monthly interest rate = 5.5% / 12 / 100 = 0.0045833 (approximately)
Next, we need to calculate the total number of monthly payments. The loan is amortized over 100 years, so the total number of monthly payments would be:
Total number of monthly payments = 100 years * 12 months/year = 1,200 months
Now, we can substitute the values into the formula and calculate the monthly payment:
P = (0.0045833 * $100,000) / (1 - (1 + 0.0045833)^(-1,200))
Using a calculator or spreadsheet, the approximate monthly payment would be around $536.82.
Please note that a loan amortized over such a long period (100 years) is highly unusual and may have significant financial implications. It's important to consider the terms and conditions of the loan and consult a financial advisor for an accurate assessment of your specific situation.