Question

A small restaurant was purchased for 316000 with no down payment and a 6.6% loan for 10 year. Find the monthly payment

Answer 1

We will have the following:

First, we calculate the total payment per year:

`p_y=316000\cdot0.066\Rightarrow p_y=20856`

Now, we calculate the monthly payment:

`316000=(p)/(0.0055)(1-(1)/((1+0.066)^(120)))\Rightarrow1738=p(0.9995331951\ldots)`
`\Rightarrow p=(1738)/((1-(1)/((1+0.066)^(120))))\Rightarrow p=1738.811686`

So, the monthly payment will be approximately $1738.811686.