Compute the monthly payment for a house loan of $200,000 to be financed over 30 years at an interest rate of 8.25%.
Added by Robert W.
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25% = 0.0825 - Loan term = 30 years Now, let's compute the monthly payment step by step. ** Show more…
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Find the monthly mortgage payment for a house loan of $200,000 at an interest rate of 4.8% for a loan period of 30 years. Show detailed steps of deriving the mortgage payment formula. Your answer will be simplified to a fraction of powers. You can leave your answer in this power form and do not have to use a calculator to calculate the decimals. However, you can use your "non-smart" calculator to find the payment value in decimals, which will help you validate whether your answer is reasonable. The monthly payment should be more than $200 and less than $2,000. Hint: Mortgage is paid every month. The interest rate is usually referred to the annual rate, which needs to be divided into 12 to get the monthly rate, which is r = 4.8% % 12 = 0.4% = 0.004. The total amount of loan is called principal, denoted by P = 200,000. Let n = 360 months (equal to 30 years) be the number of payments. Let x be the monthly payment. What is x? The day you take the loan, you owe your bank P. At the end of the first month and after your first payment, you owe the bank P1 = P + Pr – x = P(1 + r) – x, (0.3) i.e. the principal, plus interest, minus your payment. At the end of the kth month, Pk = P(1 + r)^k – (1 + r)^(k–1)x – ••• – (1 + r)^2x – (1 + r)x – x (0.4) When k = 360, the payment is over, you owe the bank nothing: P360 = 0. This equation can be solved for the monthly payment x. You may use the geometric series summation formula 1 + a + a^2 + ••• + a^(k–1) = (1 – a^k)/(1 – a).
Adi S.
Find the monthly house payments necessary to amortize each loan. Then calculate the total payments and the total amount of interest paid. $\$ 310,000$ at 5.96$\%$ for 25 years
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A mortgage of 190000 is required to purchase a house. The mortgage will be repaid with equal monthly payment s over 25 years at 8% compounded monthly. Calculate monthly payment and interest rate for 25 years.
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