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?

Expert's answer

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}}"

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