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Mathematics - Calculate Monthly Loan Repayment

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Assume that the average loan on a home is quoted to be $55,000.00.
Calculate the monthly repayment necessary to have the loan repaid after 25 years if the interest rate is 7.5%.
What is the total amount paid back on the loan?

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Solution Summary

The expert calculates monthly loan repayments. The total amount paid back on the loan is determined. A complete, neat and step-by-step solution is provided

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(a) Monthly payment = [R + {R/((1 + R)^Y - 1)}] * P, where

R = Fixed monthly rate of interest and expressed as ...

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