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if you have a loan amount for $100,000 and interest rate is 8.750% and term is 360 what is the monthly

payment?

Guest Sep 7, 2017
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The appropriate formula is:  M  =  P [ i (1 + i)n ] / [ (1 + i)n - 1 ]

 

where:  M  =  monthly payment

             P  =  principal ( 100, 000 )

             i  =  monthly interest rate ( 0.0875 / 12 )     [ Since 8.75 is a yearly rate, divide by 12 ]

             n  =  number of monthly payments ( 360 )

 

M  =  100000 [ 0.0875/12 (1 + 0.0875/12) ^ 360 ] / [ (1 + 0.0875/12) ^ 360 - 1 ]

 

M  =  $786.70

geno3141  Sep 7, 2017

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