not sure how to figure this out,Thankyou so much!
2007-09-04 11:53:25 · 3 answers · asked by cas1025 4 in Business & Finance ➔ Personal Finance
$214.92
The first answer is wrong because she assumed you only paid one year's worth of interest. AnotherguyonEarth is wrong because he is assuming you have to pay 10% of 20,000 every single year and that isn't true as you start to pay of the principal (add to the fact that he missed a decimal place and his answer should have read $277 a month).
I calculated this using an amortization calculator. You can find lots of good ones online and then you don't have to program the math into Excel on your own :-)
A good amortization calculator will show you the breakdown in each payment and you can see that early payments are mostly interest and the final payments are mostly principal. At 10% interest you will be paying $2000 of interest in the first year. Out of $2579.04 of payments, $2000 is interest the first year. That means only $579.04 went to principal. This is why any pre-payment early in the loan is so beneficial!
I hope it helped -- Good luck!
2007-09-05 06:04:28 · answer #1 · answered by Rush is a band 7 · 0⤊ 0⤋
it would be $122.22 a month. first you figure out how many months there are in 15 years (180). then you figure out what 10% of $20,000 is. ($2,000). then you divide the total ($22,000) by the amount of payment you have (180)
2007-09-04 12:03:37 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Calculator.com
I could do it for you, but you should learn. Check back here and see if you get the same answer as the other people answering.
2007-09-04 12:04:04 · answer #3 · answered by DallasLoanGuy 2 · 0⤊ 0⤋