Loan Payment FormulaLoadingIf we borrow $150,000 for 30 years at 8 per cent annual percentage rate. What is the monthly payment?1) The rate would be 8 divided by 1,200 which equals .0066666666...2) The months would be 12 × 30 = 360.3) So the monthly Payment would be:            .0066666666         .0066666666   +   ((1.0066666666 ^360)-1)       ×   $150,0004) The middle section of the equation is the most difficult to solve so we will calculate that first.(.0066666666) ÷ ((1.0066666666 ^360)-1) = (.0066666666) ÷ (10.935729397036 -1) =(.0066666666) ÷ 9.935729397036 =0.00067097908975) "Plugging" this into the rest of the equation we have:(.0066666666   +   0.0006709790897) × $150,000 =(0.007337645756) × $150,000 =$ 1,100.65Aren't you glad you have the Loan Calculator to use instead of this method?RETURN   TO   LOAN   PAYMENT CALCULATORRETURN   TO   FINANCIAL   CALCULATOR   PAGE RETURN   TO   HOME   PAGECopyright © 1999 - 1728 Software Systems
