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
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