Question

What is the monthly payment on a 25-year loan of $73,700 if the annual interest rate is 10%?

Answer 1

First figure the interest.

I = PRT

Add that to the principal.

Multiply by 25 * 12.

What do you get?

Answer 2

Divide the interest plus the principal by the number of months.

Answer 3

I am pretty sure that for loans lasting 25 years, compound interest would be used.
i = .10/12 = .008333...
n = 25(12) = 300

payment( 1 - 1.008333^-300)/.0083333) = 73700
I get payment = $ 669.71

Answer 4

Thanks...that's what I got