Buying a house for $450,000, making monthly payments of $3600 for 30 years. What will be the intrest percentage for this house assuming intrest rate remains a constant?
2006-07-24 05:16:59 · 4 answers · asked by Prince O Zamunda 4 in Science & Mathematics ➔ Mathematics
This house is located in the US
2006-07-24 05:59:12 · update #1
All these answers seem different. Anyone have an actual correct answer?
2006-07-30 09:00:24 · update #2
The annual effective rate is 9.31%- that translates to 8.94% per annum, compounded monthly.
It is seems pretty high, but that depends on what country you are in.
If you were in South Africa, this would be very cheap- If you were in the Eurozone, this is very expensive!
This all depends on whether or not the rate is guaranteed, or floating of course. Guaranteed rates are higher.
Since you are using dollars, you could be in the US, in which case it also sounds a bit high.
2006-07-24 05:43:58 · answer #1 · answered by Jordi 2 · 0⤊ 1⤋
I think this is what you are looking for.
(Loan)(X%)(13/12) = Payment.
(450)(X%)(13/12) = $3600
X% = (3600)(12) / (450)(13)
X% = 43200 / 5850
X% = 7â3846 %
Now, let's use this value in the calculation:
(Loan)(X%)(13/12) = Payment.
(450)(7â3846)(13/12) = $3600
It appears that the interest is 7â3846 %. However, the payment of $3600 is in two parts. Payment on the interest and payment off the load borrowed. I need more information to identify the exact interest rate being charged.
You are charged interest per thousand borrowed, per month (4 weeks).
13 payments made over 12 weeks, that is, four week x 13 = 52 weeks. You only make 12 payments a year, but they charge you a little extra to make up for the 13th payment. This gives a factor of (13/12).
2006-07-24 07:03:47 · answer #2 · answered by Brenmore 5 · 0⤊ 0⤋
3600 monthly X 12 months in a year =43,200 per year
43,200 X 30 years = 1,296,000
actual price divided by the price u have to pay in 30 years...
450,000 divided by 1,296,000 = 0.34722222
0.35 X 100% = 35%
therefore its 35% percent of the suppose to be original price...then monthly u expect also same interest percentage... 450000 divided by 30 =15000 15000 divided by 12months per yr=1250
1250 divided by ur monthly payment 3600= 0.3472222 so same result if u multiply it with 100% then you have 35% again...
2006-07-29 22:35:32 · answer #3 · answered by angel_413RAS 1 · 0⤊ 0⤋
the total amount paid is=3600*30*12=1296000
the principal is=450000
interest paid =amount -principal
=1296000-450000
=846000
interest=principal*rate*years/ 100
846000=450000*rate*30/ 100
846000=4500*rate*30
28200=4500*rate
rate=28200/ 4500
rate=282/ 45
rate=6.267
therefore the rate of interest is 6.267% per annum
2006-07-24 06:42:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋