Question

Given: You wish to borrow $500,000 and the bank charges 15% interest monthly. Find: The monthly payment required to pay off the loan in 30 years.

Answer 1

Ans: $75,000

Explanation:

P = $500,000

i = 15% or 0.15

n = 360 months ( 12 months * 30 )

Monthly payment = $500,000 ( A / P , 15% , 360 )

= $500000 * 0.15

=$75,000

Or , we can use following formula in place of ( A / P , 15% , 360 )

$75,000 Explanation: P = $500,000 i = 15% or 0.15 n = 360 months (12 months * 30) Monthly payment = $500,000 (A/P, 15% , 360) = $500000 * 0.15 =$75,000 Or, we can use following formula in place of (A/P, 15% , 360) CR = i(1 + i)^n/(1 + i)^n - 1