If I were to purchase a home for 575,000 at 5 3/4% for 30 years, what would my payments be? What would the interst amount per month and the principal amount.
Any ideas on how I would enter this into am Excel spreadsheet?
from first principles.
Let the principal be and be one more than the monthly interest rate, and the monthly repayment be .
Then after 1 month our outstanding debt is:
after 2 months:
and after months:
Now 30 years is 360 months and after this time our debt will be zero so: