If I went to the bank and fianaced $81,000 at 9% for 25 years what would my monthly principal and interest payment be?
P = (Po*r*t)/(1-(1+r)^-t)
Po = $81,000.
r = (9%/12)/100% = 0.0075 = Monthly %
rate expressed as a decimal.
t = 25yrs. * 12mo/yr. = 300 Months.
Plug the above values into the given Eq
and get:
P = $203,924.72
Monthly Payments = P/t
Monthly Int. = (P-Po)/t.
Monthly Prin. = (P/t) - Monthly Int.