240 likes | 494 Views
Calculating mortgage payments (Paying back your student loans) ^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 ) ^(T*12) Monthly interest rate *(1+ monthly interest rate ) Loan * ^(T*12) ((1+ monthly interest rate ) -1 )
E N D
Calculating mortgage payments (Paying back your student loans)
^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 )
^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 )
^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 ) Annual rate divided by months
(T * 12) ) rate rate months months ( rate 1+ months ( ) ( 1+ x (T * 12) ) - 1
(T * 12) ) ( 1+ ( ) ( 1+ x MIR MIR (T * 12) ) - 1 MIR MIR = Monthly Interest Rate
Here is a sample problem: 30 year mortgage loan $60,000 annual interest rate of 12%, what is the monthly payment?
.12 .12 12 12 (1 + ) - 1 .12 12 (T * 12) (--) (1+---) x (T * 12)
.12 12 (1 + ) - 1 .12 12 (T * 12) (1+---) (--) .01 x (T * 12)
(1 + ) - 1 .12 12 (T * 12) (--) (1+---) .01 .01 x (T * 12)
(T * 12) (--) (1+---) .01 .01 x (T * 12) (1 + ) - 1 .01
(T * 12) (--) (1.01) .01 x (T * 12) (1 + ) - 1 .01
(T * 12) (--) (1.01) .01 x (T * 12) (1.01) - 1
(360) (--) (1.01) .01 x (T * 12) (1.01) - 1
(360) (--) (1.01) .01 x (360) (1.01) - 1
(--) (35.9496) .01 x (360) (1.01) - 1
(--) (35.9496) .01 x (35.9496) - 1
Move the decimal 2 places left .35.9496 (35.9496) - 1
.359496 35.9496- 1 Subtract 1
.359496 34.9496 Divide the fraction
Monthly payments are: $617.17