Calculating


1
Calculating mortgage payments
(Paying back your student loans)
2
Loan
(T12)
((1monthly interest rate)
-1 )
3
Loan
(T12)
((1monthly interest rate)
-1 )
4
Loan
(T12)
((1monthly interest rate)
-1 )
Annual rate divided by months
5
(
(
)
1
x
(T 12)
) - 1
6
(
(
)
1
x
MIR
MIR
(T 12)
) - 1
MIR
MIR Monthly Interest Rate
7
Here is a sample problem
30 year mortgage loan 60000 annual interest
rate of 12 what is the monthly payment
8
(T 12)
(1 ---)
( --)
x
(T 12)
9
(T 12)
(1 ---)
( --)
.01
x
(T 12)
10
(T 12)
(1 ---)
( --)
.01
.01
x
(T 12)
11
(T 12)
(1 ---)
( --)
.01
.01
x
(T 12)
(1 ) - 1
.01
12
(T 12)
(1.01)
( --)
.01
x
(T 12)
(1 ) - 1
.01
13
(T 12)
(1.01)
( --)
.01
x
(T 12)
(1.01 ) - 1
14
(360)
(1.01)
( --)
.01
x
(T 12)
(1.01 ) - 1
15
(360)
(1.01)
( --)
.01
x
(360)
(1.01 ) - 1
16
(35.9496)
( --)
.01
x
(360)
(1.01 ) - 1
17
(35.9496)
( --)
.01
x
(35.9496 ) - 1
18
Move the decimal 2 places left
.35.9496
(35.9496 ) - 1
19
.359496
35.9496 - 1
Subtract 1
20
.359496
34.9496
Divide the fraction
21
.010286
22
60000 .010286 617.17
23
Monthly payments are 617.17
24
End