SOLUTION: What formula should I go by to finance $25,000 at 7.5 (compounded monthly for 6 years. 30 year fixed rate at 4.000% or 15 year fixed rate at 3.250% Bank of America
Or 30 year fi
Algebra.Com
Question 918262: What formula should I go by to finance $25,000 at 7.5 (compounded monthly for 6 years. 30 year fixed rate at 4.000% or 15 year fixed rate at 3.250% Bank of America
Or 30 year fixed rate at 4.125% OR 15 YEAR FIXED RATE AT 3.375% AT First Citizens. Could you help me? Also, work it out for me, please.
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
All of them use the same formula:
^{nt})
Where 
is the future amount, 
is the original principal, 
is the annual interest rate as a decimal, 
is the number of compounding periods per year, and 
is the number of years in the loan term.
To calculate the payment amount, divide , as calculated above, by the number of payments in the term of the loan. Alternatively, you can calculate the monthly payment directly using:
^{nt}}{\left(1+\frac{r}{n}\right)^{nt}\ -\ 1}\right))
Where is the original principal, is the annual interest rate as a decimal, is the number of compounding periods per year, and is the number of years in the loan term.
You can do your own arithmetic.
John
My calculator said it, I believe it, that settles it
RELATED QUESTIONS
1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his... (answered by ikleyn)
Five years ago, Diane secured a bank loan of $360,000 to help finance the purchase of a... (answered by Theo)
Complete the following table, which shows the monthly payments on a $100,000, 30-year... (answered by Theo)
The Martinezes are planning to refinance their home. The outstanding balance on their... (answered by Solver92311)
At graduation, you have a student loan of $19,000. The loan has a fixed annual interest... (answered by ikleyn,math_tutor2020)
Kara wants to remodel her kitchen. She budgets $25,000 for the job. Her bank is offering... (answered by mananth)
A retail shopping centre is in the market for $ 30 000 000. the following information is... (answered by ikleyn)
A retail shopping centre is in the market for $ 30 000 000. the following information is... (answered by ikleyn)
4. You are planning to deposit $15,000 into a bank account at the end of each year for 5... (answered by Theo)