Calculating mortgage payments (Paying back your student loans)

((1+monthly interest rate) ^(T*12) -1 ) Monthly interest rate *(1+monthly interest rate) ^(T*12) Loan *

((1+monthly interest rate) ^(T*12) -1 ) Monthly interest rate *(1+monthly interest rate) ^(T*12) Loan *

((1+monthly interest rate) ^(T*12) -1 ) Monthly interest rate *(1+monthly interest rate) ^(T*12) Loan * Annual rate divided by months

( 1+ ) (T * 12 ) ( 1+ ) - 1 (T * 12) ( rate months ) x rate months rate months

( 1+ ) (T * 12) ( 1+ ) - 1 (T * 12) () x MIR MIR = Monthly Interest Rate

Here is a sample problem: 30 year mortgage loan $60,000 annual interest rate of 12%, what is the monthly payment?

( ) ( 1 + ) (T * 12) x ( --).12 12

( ) ( 1 + ) (T * 12) x ( --).01

( ) ( 1 + ) (T * 12) x ( --).01

( ) ( 1 + ) - 1 (T * 12) x ( --).01

( 1.01 ) ( 1 + ) - 1 (T * 12) x ( --).01

( 1.01 ) ( 1.01 ) - 1 (T * 12) x ( --).01

( 1.01 ) - 1 ( 1.01 ) x (360) ( --).01 (T * 12)

( 1.01 ) - 1 ( 1.01 ) x (360) ( --).01 (360)

( 1.01 ) - 1 ( ) x ( --).01 (360)

( ) - 1 ( ) x ( --).01

( ) Move the decimal 2 places left

Subtract 1

Divide the fraction

$60,000 * = $617.17

Monthly payments are: $617.17

End