Please check my work:
A $175000 property is purchased, a 10% deposit. The interest rate is 7.5% compounded monthly. Repayments are monthly over 15 years.
To find the monthly repayment:
175,000-(175,000*0.1)=$157,500
Rate .075/12=.00625
Number of repayments 15/12=180
157500=R((1-(1+.00625))^-180/.00625)
R=157500/1460.0444
Repayments=107.87 per month
My next question is how much is left owing after the first three payments? I have tried to work that out and come up every time with numbers that look wrong. Can someone please tell me the correct formula?
Thanks
David
A $175000 property is purchased, a 10% deposit. The interest rate is 7.5% compounded monthly. Repayments are monthly over 15 years.
To find the monthly repayment:
175,000-(175,000*0.1)=$157,500
Rate .075/12=.00625
Number of repayments 15/12=180
157500=R((1-(1+.00625))^-180/.00625)
R=157500/1460.0444
Repayments=107.87 per month
My next question is how much is left owing after the first three payments? I have tried to work that out and come up every time with numbers that look wrong. Can someone please tell me the correct formula?
Thanks
David