Asked by solooloo
You want to buy an apartment priced at $300,000. You have saved a deposit of $30,000. The bank has agreed to lend you the $270,000 as a fully amortising loan with a term of 25 years. The interest rate is 12% pa and is not expected to change. What will be your monthly payments? Remember that mortgage payments are paid in arrears (at the end of the month).
Answers
Answered by
Henry
P = (Po*r*t)/(1-(1+r)^-t)
Po = $270,000
r = (12%/12)/100% = 0.01 = Monthly % rate expressed as a decimal.
t = 25yrs. * 12mo/yr. = 300 Months.
P = (270,000*0.01*300)/(1-1.01^-300) =
$853,111.56
Monthly Payments = P/t
Po = $270,000
r = (12%/12)/100% = 0.01 = Monthly % rate expressed as a decimal.
t = 25yrs. * 12mo/yr. = 300 Months.
P = (270,000*0.01*300)/(1-1.01^-300) =
$853,111.56
Monthly Payments = P/t
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