Use the real estate amortization table to find the monthly payment for the loan.
-What is the monthly payment on a 30-year loan of $96,800 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 30-year loan of $96,800 if the annual interest rate is 8%?

Quizplus · Accepted Answer

The monthly payment on a 30-year loan can be calculated using the formula for a fixed-rate mortgage. The formula is P = L[c(1 + c)^n]/[(1 + c)^n - 1], where P is the monthly payment, L is the loan amount, c is the monthly interest rate, and n is the number of payments. For a loan of $96,800 at an annual interest rate of 8%, the monthly interest rate is 0.08/12 = 0.0066667, and the number of payments is 30*12 = 360. Plugging these values into the formula gives a monthly payment of approximately $710.51.

Use the Real Estate Amortization Table to Find the Monthly