The monthly payment on a$100,000 mortgage at a rate of 8 1/2 % for 20 years is 8678.23
I am not sure
Doesn't paying over $8,000 a month seem awfully high? Your figures are correct, but the decimal point is in the wrong place.
Check this site for the answer.
http://www.bankrate.com/brm/mortgage-calculator.asp?unroundedPayment=867.8232333655338&loanAmount=100000.00&nrOfYears=20&nrOfMonths=240&interestRate=8.50&startMonth=0&startDay=8&startYear=2008&monthlyPayment=867.82&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=0&oneAdditional=0&oneAdditionalMonth=0&oneAdditionalYear=2008&paidOffDate=Jan+8%2C+2028&submit.x=27&submit.y=2
The monthly payment on a$100,000 mortgage at a rate of 8 1/2 % for 20 years is 8678.23
I am not sure
P = $100,000
i = 8.5/(100x12)
n = 240
R = Pi/[1 - (1 + i)^-n] = $867.82
To calculate the monthly payment on a mortgage, you would typically use a formula called the Mortgage Payment Formula. The formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
M = Monthly payment
P = Principal amount (the amount borrowed)
i = Monthly interest rate (expressed as a decimal)
n = Number of monthly payments
In this case, you have a $100,000 mortgage with a rate of 8 1/2% and a term of 20 years.
First, convert the interest rate to a decimal by dividing it by 100: 8 1/2% = 8.5/100 = 0.085.
Next, calculate the monthly interest rate by dividing the annual interest rate by 12 (number of months in a year): 0.085 / 12 = 0.0070833.
Then, calculate the number of monthly payments by multiplying the number of years by 12: 20 years * 12 months/year = 240 months.
Now, plug the values into the formula:
M = $100,000 [ 0.0070833(1 + 0.0070833)^240 ] / [ (1 + 0.0070833)^240 – 1 ]
After evaluating the formula, the monthly payment comes out to be approximately $8678.23.
So, the answer is correct: the monthly payment on a $100,000 mortgage at a rate of 8 1/2% for 20 years is indeed $8678.23.