Fernanda C.

asked • 07/03/17

the loan is 200,000 dollars. there is an interest rate of 4.75% compounded for 15 years. what is the monthly payment of the loan?

There are two formulas that can be involved with this problem, but I am not sure which one to use.

1 Expert Answer

By:

Mark M. answered • 07/03/17

Tutor
5.0 (278)

Mathematics Teacher - NCLB Highly Qualified

See tutors like this
See tutors like this
monthly payment = rp / (1 - (1 + r)-n)
r = rate
p = principal
n = number of payments
Upvote • 0 Downvote
More
Report

Walter B.

This answer is correct in concept; however the rate (r) = .0475/12 for a per period interest rate of  .395833% and the number of payments is the years times 12 (monthly payments) or 15*12 = 180 payments.
 
Use those numbers for i and n and you will get the correct answer for monthly payment.
Report

07/03/17

Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.

OR

Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.