Question

how do you find total payment over a term of a loan? (monthly payment)

Answer 1

We find the  total payment over a term of a loan using the below formula

P =	Regular Payments
PV =	Loan Amount
r =	rate of interest
n =	no of periods
P =	r (PV)
	1 - (1 + r )-n

Let the Loan amount be $ 316000, 30 years Loan, 3.6% APR compounded monthly, then monthly payments would be $ 1436.68 as solved below:

P =	r (PV)
	1 - (1 + r )-n
P =	(3.6%/12)*316000
	1 - (1 / (1 + 3.6%/12)^360))
P =	948
	0.659854983
P =	1436.68