Question

You borrow 125,000 for 25 years at an APR of 6.5%. What will be your monthly payment?

Answer 1

`\bf \qquad \qquad \textit{Amortized Loan Value} \\\\ pymt=P\left[ \cfrac{(r)/(n)}{1-\left( 1+ (r)/(n)\right)^(-nt)} \right] \\\\\\\\ \qquad \begin{cases} P= \begin{array}{llll} \textit{original amount}\\ \end{array}\to & \begin{array}{llll} 125000 \end{array}\\ pymt=\textit{periodic payments}\\ r=rate\to 6.5\%\to (6.5)/(100)\to &0.065\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{APR, meaning once} \end{array}\to &1\\ t=years\to &25 \end{cases}`