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153000(.04/12)/[1-(1+.04/12)-12(15)]

 Oct 12, 2017
 #1
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153000(.04/12)/[1-(1+.04/12)-12(15)]

This the TVM formula to calculate the monthly payment required to save $153,000 over a period of 15 years in the future. However, you have made a small mistake in writing it. It should be written like this:

 

$153,000*(0.04/12) / [1 -(1+0.04/12)^(-12*15)]

$153,000*(0.0033333) / [1 - (1.0033333)^(-180)]

$510 / [0.45063721031272090137130624075444]

=$1,131.72 - The monthly payment required to save $153,000 in the future.

 Oct 12, 2017
 #2
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P.S. The Guest is correct in adjusting the formula and the result he/she obtained. However, the interpretation is wrong!. This formula calculates the monthly payment on a loan of $153,000 @4% compounded monthly over a period of 15 years, or 180 months.

 Oct 12, 2017

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