Answer to Question #208809 in Finance for Syed Eassa

Question #208809

Suppose you take out a 30-year mortgage of $100,000 with a fixed interest rate of 5 percent. You must make 360 equal monthly payments. Write an equation that defines what the payment is?


1
Expert's answer
2021-06-21T12:19:30-0400

given,

p = $100,000

r = 5%

m = 12

n = 30 

monthly payment equation:

"\\frac{P\\times\\frac{r}{m}}{1-(1+\\frac{r}{m})^{-n\\times m}}"


"\\frac{10000\\times\\frac{0.05}{12}}{1-(1+\\frac{0.05}{12})^{-12\\times 30}}"




Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS