Asked by evan chen

monthly payments on a $100000 loan at 5.5% annual interest amortized over 100 years will be close to?

Answers

Answered by MathMate
Assume compounding yearly, then monthly payment will be 1/12 of the yearly payment.

The payment P per period over n periods for an amortized amount A at annual interest rate of R (written as 1.05 for 5%) is

AR<sup>n</sup>=P(R<sup>n</sup>-1)/(R-1)
A=100000
R=1.055
n=100
P=AR<sup>n</sup>(R-1)/(R<sup>n</sup>-1)
=$5526.13
Monthly payment = $5526.13/12
=$460.51

Compounded monthly:
A=100000
R=1.00458333
n=1200
P=$460.24
Answered by Anonymous
A table cost $3,780 in cash will purchase table in 36 monthly payments. A 13% per year finance charge will be assessed on the amount Financed find finance charge installment price and the monthly payment
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