Question

A buyer got a 30 year loan with a loan balance of $65,000 with an interest rate of 10% and a factor of 8.78. What will be the borrowers monthly P & I payment?

Answer 1

Answer:
$586.27/mo

Explanation:
Factor doesn’t compound like interest does, 8.78 factor of $65,000 comes out to be $5,707 over the 30 years is $15.85/mo. The loan $65,000, 10% interest rate, 30 years comes out to a monthly payment of $570.42.
$570.42+$15.85= $586.27/mo.