Question 64442This question is from textbook college algebra
: money questions get me lost....help!
A 20 year fixed-rate mortgage with an annual interest rate of 8.4% compounded monthly is taken on a $83,000 loan. What is the monthly payment to the nearest cent?
thanks for the help!
This question is from textbook college algebra
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A 20 year fixed-rate mortgage with an annual interest rate of 8.4% compounded monthly is taken on a $83,000 loan. What is the monthly payment to the nearest cent?
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Formula: S=R[(1+i)^n -1]/i where R is the required montly payment,i=r/12,
n=number of payments.
83000*0.007=R[1+.084/12)^(20*12)-1]
581=R[1.007^(240)-1]
581=R[5.3342-1]
581=R[4.3342]
R=$134.05
Cheers,
Stan H.
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