Question

Calculate the monthly payment using this formula ? = P*(1+?)^T/(1+?)^T −1

Principal Loan= 100,000

Interest rate= 3.333% for 30 years

I used the calculate solver and got 439.77 but when I plug it into this equation I get a different number.

Answer 1

PVOrdinary Annuity = C*[(1-(1+i/(f*100))^(-n*f))/(i/(f*100))]

C = Cash flow per period

i = interest rate

n = number of payments I f = frequency of payment

100000= Cash Flow*((1-(1+ 3.333/1200)^(-30*12))/(3.333/1200))

Cash Flow = 439.77

Using Calculator: press buttons "2ND"+"FV" then assign

PV =-100000

I/Y =3.333/12

N =30*12

FV = 0

CPT PMT

Using Excel

=PMT(rate,nper,pv,fv,type)

=PMT(3.333/(12*100),12*30,,100000,)