# Interest on a loan.

• Jul 21st 2010, 03:04 PM
sandy
Interest on a loan.
hi guys ,
i need some help with a problem i was asked:

if a house is worth \$300,000 and the interest on a loan taken to buy it is 6%, i need to find a function that calculates if i pay a certain amount each week how much do i have to pay interest on this amount and how much i would have remaining to pay for the house.

So please how is a function like this constructed???

Thanks
• Jul 22nd 2010, 06:33 PM
sandy
• Jul 22nd 2010, 07:45 PM
Wilmer
Quote:

Originally Posted by sandy
if a house is worth \$300,000 and the interest on a loan taken to buy it is 6%, i need to find a function that calculates if i pay a certain amount each week how much do i have to pay interest on this amount and how much i would have remaining to pay for the house.
So please how is a function like this constructed???

Not enough information given.
Do you mean 52 payments per year?
How many years?
Does the 6% compound weekly?

If yes, and 25 years, then this is formula to get weekly payment:

[300000(.06/52)] / [1 - f] where f = 1 / (1 + .06/52)^(25*52)

If you can't follow that, not much can be done here for you: not a classroom.