Title: Calculating
1Calculating mortgage payments
Paying back your student loans
2Loan
T12
1monthly interest rate
-1
3Loan
T12
1monthly interest rate
-1
4Loan
T12
1monthly interest rate
-1
Annual rate divided by months
51
x
T 12
- 1
61
x
MIR
MIR
T 12
- 1
MIR
MIR Monthly Interest Rate
7Here is a sample problem
30 year mortgage loan 60000 annual interest
rate of 12 what is the monthly payment?
8T 12
1 ---
--
x
T 12
9T 12
1 ---
--
.01
x
T 12
10T 12
1 ---
--
.01
.01
x
T 12
11T 12
1 ---
--
.01
.01
x
T 12
1 - 1
.01
12T 12
1.01
--
.01
x
T 12
1 - 1
.01
13T 12
1.01
--
.01
x
T 12
1.01 - 1
14360
1.01
--
.01
x
T 12
1.01 - 1
15360
1.01
--
.01
x
360
1.01 - 1
1635.9496
--
.01
x
360
1.01 - 1
1735.9496
--
.01
x
35.9496 - 1
18Move 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
2260000 .010286 617.17
23Monthly payments are 617.17
24End