What will be the monthly payment on a home mortgage of $75,000 at 12 percent interest, to be amortized over 30 years?

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula for a fixed-rate mortgage: PMT = [P * r * (1 + r)^n] / [(1 + r)^n – 1], where P is the principal ($75,000), r is the monthly interest rate (12% annual interest rate divided by 12 months = 0.01), and n is the total number of payments (30 years * 12 months = 360). Using this formula, the monthly payment is approximately $771.46.

What Will Be the Monthly Payment on a Home Mortgage