amortization

[Gibson486]

so I f i take the equation....

plug in 5.85 interest rate (.0585)
plug in 125000 for first balance
and this will be paid over 7 years (84 months)


Why do I keep getting 7374.69?

the equation is, A = start [int *(1 + int)^num_of_payments] / {[(1+int)^num_of_payments]-1}, right?

 

[MommysLittleMonster]

Amortization?


What exactly is the problem, what are you trying to do?

 

[KLin]

I get 1817.09

 

[mugs]

Are you supposed to divide the interest by the number of payments in a year?

 

[Gibson486]

Sorry for the mispelling. I'm trying to figure out what the monthy payment will be on a 125000 loan with a 5.85% rate. My mom asked me thsi question earlier, and I proceeded to do the math out but i keep getting my high 7374. I have not done this tsuff in about 4 years, so my memory is pretty rough. Klin got it right....maybe it's my dam calculator.

 

[insite]

We have a winner!

You have to divide the interest by the number of months in a year (12) or it calculates with the interest at 5.85% PER MONTH.

Why don't you make it easy on yourself and use one of the million online calculators?

 

[Gibson486]

Originally posted by: insite
We have a winner!

You have to divide the interest by the number of months in a year (12) or it calculates with the interest at 5.85% PER MONTH.

Why don't you make it easy on yourself and use one of the million online calculators?

Nah, I like calculating this stuff b/c ytou never know when you need to know it when there is no computer near.

I checked my self by getting the equation off of wiki, but maybe dividing the interest by 12 is what they meant by periodic interest.

http://en.wikipedia.org/wiki/Amortization_calculator

 

[DaWhim]

in a financial calc

i = 5.85/12
n = 7*12
pv = 125,000
pmt = ?