Monthly Loan Payment

Question

You are purchasing an office space and will have to take out a 20 year loan for $327,000 at an interest rate of 7.3%. What will your monthly payment be?

Answer 1

P * r * (1 + r)ⁿ / [(1 + r)ⁿ – 1]

where P = Outstanding loan amount, r = Effective monthly interest rate, n = Total number of periods / months

Substitute given values and calculate.