How do I calculate mortgage on paper?

Posted by admin | Homework Help | Thursday 18 June 2009 9:59 pm
fwerds asked:


**I DO NOT NEED AN ONLINE WEBSITE WITH A CALCULATE.. I NEED THE ACTUAL EQUATION TO GET THE ANSWER..THANKS…

I have this problem:
mortgage 100,000
Rate 9.5%
20 years

Please show how to calculate this using A PEN PAPER

mortgage online

1 Comment »

  1. Comment by psunuc — June 20, 2009 @ 1:14 am

    mortgage online

    I assume you mean you want to solve for the mortgage payment

    B = mortgage value = 100,000
    i = interest rate = Rate/12 (normal mortgages are compounded monthly) = (0.095)/12 = 0.0079
    n = number of months = 20 * 12 = 240

    Payment = (B * i) / (1-(1+i)^-n)
    Payment = (100,000 * 0.0079) / (1 - (1+0.0079)^-240)
    Payment = 932.13

    well, this is pen, paper and calculator but I think it is what you want.

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