# Consumer Math, fixed rate mortage

• Aug 1st 2007, 03:36 PM
Suwanee
Consumer Math, fixed rate mortage
I just can't seem to calculate this on my calculator:
find the monthly payment necessary to amortize a $75,000 mortage at 9.5% annual interest for 15 years. This is how I calculated it: 75,000(.095/12)(1+.095/12)^(180) divided by (1+.095/12)^(180)-1 I am not getting the right answer which I know is 783.17 Could it be my calculator? • Aug 1st 2007, 05:25 PM topsquark Quote: Originally Posted by Suwanee I just can't seem to calculate this on my calculator: find the monthly payment necessary to amortize a$75,000 mortage at 9.5% annual interest for 15 years. This is how I calculated it:
75,000(.095/12)(1+.095/12)^(180) divided by (1+.095/12)^(180)-1

I am not getting the right answer which I know is 783.17

Could it be my calculator?

I can't verify the procedure, but I get 783.169.

Half steps:
$75,000 \left ( \frac{.095}{12} \right ) \left ( 1+\frac{.095}{12} \right ) ^{180} = 2454.9147747917$
and
$\left ( 1 + \frac{.095}{12} \right ) ^{180}-1 = 3.1345933049123$

-Dan
• Aug 1st 2007, 05:32 PM
JakeD
Quote:

Originally Posted by Suwanee
I just can't seem to calculate this on my calculator:
find the monthly payment necessary to amortize a \$75,000 mortage at 9.5% annual interest for 15 years. This is how I calculated it:
75,000(.095/12)(1+.095/12)^(180) divided by (1+.095/12)^(180)-1

I am not getting the right answer which I know is 783.17

Could it be my calculator?