Question 1163417
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*[tex \Large M] is the monthly payment, *[tex \Large P] is the principal amount of the loan, *[tex \Large r] is the interest rate <b><i>per month, expressed as a decimal</i></b> *[tex \Large \(\frac{0.07}{12}\)], and *[tex \Large n] is then number of payment periods *[tex \Large 30\ \times\ 12].


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ M\ =\ P\(\frac{r\(1\,+\,r\)^n}{\(1\,+\,r\)^n\,-\,1}\)]


Solving for *[tex \Large P] in terms of everything else:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ P\ =\ M\(\frac{\(1\,+\,r\)^n\,-\,1}{r\(1\,+\,r\)^n}\)]


Plug in the numbers you know and do the arithmetic.  The total money paid is the number of payments times the amount of a payment.  The amount that is interest is the total amount paid minus the original principal.
								
								
John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it
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{{n}\choose{r}}
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