You have a mortgage loan totaling $100,000. Your interest rate is 5% compounded annually. You want to pay off your loan in 30 years. What is your monthly mortgage payment? What if you have $200,000 in loans? $300,000? $400,000?
USING MS-EXCEL AS A CALCULATOR AND USING IT FUNCTIONS PLEASE SOLVE THE FOLLOWING
| Formula for monthly payment | = | =pmt(rate,nper,-pv) | Where, | |||||||||
| rate | Periodical interest rate | |||||||||||
| nper | Number of period | |||||||||||
| pv | Present value | |||||||||||
| So, | ||||||||||||
| Mortgage loan | rate (5%/12) | nper (30*12) | Monthly payment | |||||||||
| $ -1,00,000 | 0.004167 | 360 | $ 536.82 | |||||||||
| $ -2,00,000 | 0.004167 | 360 | $ 1,073.64 | |||||||||
| $ -3,00,000 | 0.004167 | 360 | $ 1,610.46 | |||||||||
| $ -4,00,000 | 0.004167 | 360 | $ 2,147.29 | |||||||||
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