Question

How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Loan Amount: $35,000,000.00 6.1% Interest Rate (if possible, in Excel)

Answer 1

Monthly payment	=	[P × R × (1+R)^N ] / [(1+R)^N -1]
Using the formula:
Loan amount	P	$                                                    35,000,000
Rate of interest per period:
Annual rate of interest		6.100%
Frequency of payment	=	Once in 1 month period
Numer of payments in a year	=	12/1 =	12
Rate of interest per period	R	0.061 /12 =	0.5083%
Total number of payments:
Frequency of payment	=	Once in 1 month period
Number of years of loan repayment	=	30.00
Total number of payments	N	30 × 12 =	360
Period payment using the formula	=	[ 35000000 × 0.00508 × (1+0.00508)^360] / [(1+0.00508 ^360 -1]
Monthly payment	=	$                                                    212,098.17