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?
Thanks.
I expect there is some potted formula for theis, but we can also work it out
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:
or:
RonL