Problem: You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments
a) if the interest rate is 16% per year what is the amount of the monthly payment?
b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?
c) if you can pay 1500 per month, need to borrow 100000, and want a 25 year mortgage, what is the highest interest rate you can pay?
What does the below mean?
- Do not round off the interest rate when computing the monthly rate, or you will not get the same answer reported here.
- You must input PMT and PV with opposite signs.
- You must input PMT and PV with opposite signs.