Question

A mortgage of 200 000 is required to purchase a house. The mortgage will be repaid with equal monthly payments over 25 years at 10% compounded monthly. what is the monthly payment

Answer 1

payment = principal [ r/ (1 - {1+r}^-n) ]
here
principal = 200,000
r = .10/12 = .0083333333.....
n = 25*12 = 300

= 200,000 [ .00833... / (1-{1.00833..}^-300) ]

= 200,000 [ .009087 ]

= 1817.40

Answer 2

checks at
http://www.mortgagecalculator.org/