In: Statistics and Probability
Find the monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.
Answer:-
Given that:-
Find the monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.?
The monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.
(P) Loan payment
* Number of periodic payments (n) = 360 [30 years times 12 montly payments per year]
* periodic interest rate (i)
= 0.00375[4.5% annually expressed as 0.045,divided by 12 monthly payments per year]
* Discount factor D
Hence Loan payment per month
(monthly payment)