SOLUTION: In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment?

Question 1136059: In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment?

Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
use the following online calculator.

https://arachnoid.com/finance/

give it the following inputs.

present value = 70000
number of monthly time periods = 15 * 12 = 180
interest rate percent per month = 12/12 = 1
payments are made at the end of each time period.
future value = 0

click on PMT.

the calculator will tell you that the monthly payments are $840.12.

here's a display of the results of using that calculator.

$$$

the present value is positive because it's money you received.

the payment is negative because it's money you hav to pay out.

the calculator requires one of them to be negative if the other is positive and vice versa.

since the time periods are in months, you take the number of years and multiply them by 12 and you take the interest rate percent per year and divide it by 12.

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