To calculate the monthly payment for this loan, we first need to determine the number of compounding periods within the loan term. Since the interest is compounded semi-annually (twice a year) and the loan term is 5.5 years, there will be a total of 11 compounding periods.
Next, we calculate the periodic interest rate:
Periodic interest rate = annual interest rate / compounding periods per year
Periodic interest rate = 5.15% / 2 per year
Periodic interest rate = 2.575% per compounding period
Now we can use the formula for calculating the monthly payment on a loan:
Monthly payment = Pmt * [r(1+r)^n] / [(1+r)^n - 1]
where:
Pmt = loan amount = $149 383.00
r = periodic interest rate = 2.575% or 0.02575
n = number of payments = 11
Plugging in the values, we get:
Monthly payment = $149 383.00 * [0.02575(1+0.02575)^11] / [(1+0.02575)^11 - 1]
Monthly payment = $149 383.00 * [0.02575(1.29477)] / [1.29477 - 1]
Monthly payment = $149 383.00 * [0.03335] / [0.29477]
Monthly payment = $149 383.00 * 0.1131
Monthly payment ≈ $16 907.45
Therefore, the monthly payment for a loan of $149 383.00 at an interest rate of 5.15% per annum, compounded semi-annually, with a term of 5.5 years is approximately $16 907.45.
What is the monthly payment for a loan of $149 383.00 with an interest rate of 5.15% per annum, compounded semi-annually? The term of the loan is 5.5 years
1 answer
1 answer