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

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Mathematics Teacher - NCLB Highly Qualified

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.
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07/03/17

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