# Thread: Interest Compounded Monthly for 30 Years

1. ## Interest Compounded Monthly for 30 Years

Hey everyone, I've got this problem from my calc course and I've been getting some numbers that don't look realistic to me.

A $100,000 loan is to be paid off after 30 years. The annual interest rate is 0.09 (9 percent). A) The total amount in the loan after n months is given by P(1+i)n, where P is the starting amount for the loan, i is the monthly interest rate, and n is the total months the loan is being paid off. How much in total will have to be paid off for the loan mentioned above? B) Assume you pay a fixed monthly amount D to pay off the loan (the payment is done at the end of the month). After the first month,$D dollars will be paid off of the loan. With the annual interest rate of 0.09 stated above, what is the total paid off after 2 months? What about 3? Determine a general formula for the total paid off after 30 years, which will be in terms of D.

- Hollywood

5. ## Re: Interest Compounded Monthly for 30 Years

I guess I had just read your response incorrectly last time. I understand it all and it was correct! Thank you so much for all the help! I really appreciate it