00:02
We have to calculate the monthly payment total interest and other details for an existing mortgage.
00:09
So you can use the formula for calculating the monthly payment of a fixed rate mortgage.
00:15
So monthly payment is equal to be multiplied by r multiplied by one added to our to end divided by one added to our to the power and subtracted from one where p is the principal loan amount r is the monthly interest rate that is annual rate divided by 12 and n is the total number of payments that is loan term in months.
01:12
So principal amount that is p is given as dollar one lakh fifty three thousand annual interest rate is given as 7 % and loan terms is given as 30 years.
01:34
That is 360 months.
01:37
So first we have to convert the annual interest rate to the decimal and then to monthly rate.
01:48
So monthly interest rate annual interest rate divided by 12 divided by hundred which is equal to we get 0 .07 divided by 12 is equal to we get 0 .0058333 then second we have to calculate the monthly payment rate using the formula.
02:33
So monthly payment is equal to one lakh fifty three thousand multiplied by 0 .0058333 multiplied by one added to 0 .0058333 to the power 360 which is equal to we get.
03:05
Sorry, it is divided by one added to 0 .0058333 to the power 360 subtracted from one.
03:20
Now we have to calculate the numerator first.
03:24
So numerator is equal to one lakh fifty three thousand multiplied by 0 .0058333 multiplied by one added to 0 .0058333 to the power 360 which is equal to we get 1224 .61104 then we have to calculate the denominator, which is equal to one added to 0 .0058333 to the power 360 subtracted from one which is equal to we get 222 .8036535 our next we have to calculate the monthly payment...