Using the formula I=PRT how do I calculate the morgage payments of a house that costs $1,000,000 and it has to be paid off in 30 years?
2006-10-09 11:16:06 · 8 answers · asked by cdgbabywinc 1 in Science & Mathematics ➔ Mathematics
You need the interest rate. Also, mortgages aren't done via simple interest. You have to look at compound interest formulas.
2006-10-09 13:01:10 · answer #1 · answered by mathematician 7 · 0⤊ 0⤋
You don't have all the information. The principle is $1,000,000 and the time is 30 years, but you didn't give the rate. When you find it, multiply those 3 numbers to get the total interest, then add that to the principle to find total payment. If you need a monthly payment, divide the total payment by 30 x 12, or 360 months.
2006-10-09 18:20:37 · answer #2 · answered by tlf 3 · 1⤊ 1⤋
Need interest rate, let's say 6% annual. say pay monthly, that's
0.5% monthly or i =.005 as a decimal. The problem is harder than just i=prt. Here is the formula
Monthly payment = i^(1+i)^360/[(1+i)^360-1]* 1000000
I get $5995.51 per month
2006-10-09 18:40:46 · answer #3 · answered by rwbblb46 4 · 0⤊ 0⤋
You need more information to solve this. If the interest rate is 6% you will have to pay 1/2% per month just to pay interest. That means you have to pay $5000 a month just to cover the interest.
2006-10-09 18:25:04 · answer #4 · answered by Nelson_DeVon 7 · 1⤊ 1⤋
you also need the interest rate. Mortgages aren't done via simple interest, they COMPOUND.
2006-10-13 09:46:56 · answer #5 · answered by locuaz 7 · 0⤊ 0⤋
Consult this source:
2006-10-09 18:20:22 · answer #6 · answered by James L 5 · 0⤊ 2⤋
get a second job and you won't have to worry about it.
2006-10-09 18:18:40 · answer #7 · answered by Anonymous · 0⤊ 3⤋
well?...that lets me out of this answer?
2006-10-09 18:19:06 · answer #8 · answered by Anonymous · 0⤊ 2⤋