SOLUTION: what is the monthly payment on a 25 year loan of 85,500 if the annual interest rate is 10%
a. $807.97
b.$777.20
c.$746.42
d.$854.15
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-> SOLUTION: what is the monthly payment on a 25 year loan of 85,500 if the annual interest rate is 10%
a. $807.97
b.$777.20
c.$746.42
d.$854.15
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Question 1120507: what is the monthly payment on a 25 year loan of 85,500 if the annual interest rate is 10%
a. $807.97
b.$777.20
c.$746.42
d.$854.15 Answer by Theo(13342) (Show Source):
present value = 25000
future value = 0
number of time periods = 25 years * 12 months per year = 300 months.
interest rate per time period = 10% per year / 12 = .8333333.....% per month.
the calculator rounds to 6 decimal digits.
just make sure you enter at least 7 to allow it to do so.
payment is made at the end of each time period.
click on PMT and the calculator tells you that the payment at the end of each monthly time period is equal to 776.94.
it is shown as negative since this is money going out, while the present value is money coming in.
if you had shown the present value as negative, then the payment would have shown as positive.
here's a display of the results of using this calculator.
i confirmed with the TI-BA-II financial calculator that this is accurate.
financial formulas that can be used manually can be found in the following reference.
