eveobear4ahs eveobear4ahs
  • 13-03-2017
  • Mathematics
contestada

What is the monthly payment for a $20,230 loan at 11.5 percent for 20 years?

Respuesta :

Nirina7
Nirina7 Nirina7
  • 21-03-2017
the main formula is 
M= P (i(1+i)^n) / (1+i)^n) - 1
M: monthly payment
P: mortgage principale= 
 $20,230
i=montly interest, 11.5%=11.5/100=0.115, i= 0.115/12=0.009
n=number of months=12x20(years)=240 months

M= 
$20,230(0.009(1.009)^240) / (1.009)^240-1=$20,230 x 0.0077 / 8.58-1
M=$20.57

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