Calculus Question : Payment to Amortize Loan?
Find the monthly house payment necessary to amortize the loan. Assume that interest is compounded monthly.
$181,530 at 8.09% for 30 years
A)$1,223.81
B)$1,411.92
C)1,343.41
D)$40.79
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Let P be the annual payment.
Then A = P*(1-v^n)/i
P = i*A/(1-v^n)
=(.0809/12)*181530 / (1- 1/(1+.0809/12)^(12*30))
=1343.41