Question

Cent. ) $100,000 at 6%, paid out monthly for 12 years PMT=$

Answer 1

• Answer: MONTHLY Payment ------> APPROXIMATELY: 1007.18

Therefore, The MONTHLY Payment is APPROXIMATELY: 1007.18

• Explanation:

MAKE A PLAN:

We need to find the monthly payment (PMT) for a loan of 100, 000 at a 6% annual interest rate, paid out monthly for 12 years.

SOLVE THE PROBLEM:

• (1) - Convert the annual interest rate to a monthly interest rate:

r = 0.06 / 12 = 0.005

• (2) - Calculate the total number of payments:

n = 12 * 12 = 144

• (3) - Use the formula for the monthly payment (PMT) of a loan:

PMT = P * r(1 + r)^n / (1 + r)^n - 1

• Where:

P = Principal Amount

r = Monthly Interest Rate

n = Total Number of Payments

• (4) - PLUG THE VALUE IN:

PMT = 100000 * 0.005(1 + 0.005)^144 / (1 + 0.005)^144 - 1

• DRAW THE CONCLUSION:

• Calculate The Final Answer:

PMT ≈ 1007.18

Therefore, The MONTHLY Payment is APPROXIMATELY: 1007.18

I hope this helps you!