Calculate a monthly mortgage payment


Task:

Using a calculator can you show me step by step how I can calculate a monthly mortgage payment.

For example the mortgage is $120K, the rate is 4.5% and the term is 360 months.

Further suppose I decide to pay off the mortgage at year 5, what would the amount owed be?

I have read the book and see the formula, I can calculate in excel as everyone else, but don't understand the formula nor how to calculate without the chart. So a detailed desciption would be very helpful.

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Finance Basics: Calculate a monthly mortgage payment
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