Thread: 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?

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:

and


-Dan

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 put your formula into the google calculator with the result

(75 000 * (.095 / 12) * ((1 + (.095 / 12))^180)) / (((1 + (.095 / 12))^180) - 1) = 783.168512.