If I went to the bank and fianaced $81,000 at 9% for 25 years what would my monthly principal and interest payment be?

Answer 1

P = (Po*r*t)/(1-(1+r)^-t)

Po = $81,000.

r = (9%/12)/100% = 0.0075 = Monthly %
rate expressed as a decimal.

t = 25yrs. * 12mo/yr. = 300 Months.

Plug the above values into the given Eq
and get:

P = $203,924.72
Monthly Payments = P/t

Monthly Int. = (P-Po)/t.

Monthly Prin. = (P/t) - Monthly Int.