Use the real estate amortization table to find the monthly payment for the loan.
-What is the monthly payment on a 20-year loan of $57,600 if the annual interest rate is 8%?

Question

Use the real estate amortization table to find the monthly payment for the loan. 
-What is the monthly payment on a 20-year loan of $57,600 if the annual interest rate is 8%?

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula for an amortizing loan: M = P[r(1+r)^n]/[(1+r)^n – 1], where P is the loan principal ($57,600), r is the monthly interest rate (8% annual rate divided by 12 months = 0.0066667), and n is the total number of payments (20 years * 12 months = 240). Plugging in these values gives a monthly payment of approximately $482.11.

Use the Real Estate Amortization Table to Find the Monthly