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Math Help - Consumer Math, fixed rate mortage

  1. #1
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    Unhappy 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?
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  2. #2
    Forum Admin topsquark's Avatar
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    Quote Originally Posted by Suwanee View Post
    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
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  3. #3
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    Quote Originally Posted by Suwanee View Post
    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.
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