You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for $150,000. What is the monthly payment which includes principle plus interest?
You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for $150,000. What is the monthly payment which includes principle plus interest?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 6FPE
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You look to pay the loan back over 30 years paying 1% per month. You are taking out a mortgage for $150,000. What is the monthly payment which includes principle plus interest?
Expert Solution
Step 1 What is installment?
Installment is the amount of periodic payments a borrower makes to its lender in order to pay back the loan with interest in a period of time.
P = principal
r = rate
n = number of periods
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