How much would you pay per month for 236,500.00 at 3.5% interest
You should ALWAYS make your question very clear!. Generally speaking, when you borrow
money from a Bank it's for a certain term, or period of time such as a mortgage for 10, 20 or
even 30 years!. The way you have posed the question, it simply means that you multiply the
interest rate by the principal & then divide by 12 to give you the monthly interest.
So, in this case you divide 3.5/100, because % means per hundred, or 3.5/100=.035 x 236,500=$8,277.50 which is annual interest. Then divide that by 12 to give you monthly interest if the 3.5% is compounded monthly. Or, $8,277.50/12=$689.79
How much would you pay per month for 236,500.00 at 3.5% interest
You should ALWAYS make your question very clear!. Generally speaking, when you borrow
money from a Bank it's for a certain term, or period of time such as a mortgage for 10, 20 or
even 30 years!. The way you have posed the question, it simply means that you multiply the
interest rate by the principal & then divide by 12 to give you the monthly interest.
So, in this case you divide 3.5/100, because % means per hundred, or 3.5/100=.035 x 236,500=$8,277.50 which is annual interest. Then divide that by 12 to give you monthly interest if the 3.5% is compounded monthly. Or, $8,277.50/12=$689.79
$1,061.99.
The payment will contain both interest + Principle payment usually. This figure is based on a 30 year loan, monthly repayment, amortizing loan.
Over time, the interest component in this amount that you pay will decrease as principle is paid off and the principle component will increase. Though, the monthly figure to be paid does not change.
You would need the formula or a financial calculator to get the value.
