A mortgage company offers to lend you $85,000; the loan calls for payments of $8,881.62 at...
A mortgage company offers to lend you $85,000; the loan calls for payments of $8,881.62 at the end of each year for 30 years. What interest rate is the mortgage company charging you? Round your answer to two decimal places.
Homework Answers
Ans 9.82%
| P = | Regular Payments |
| PV = | Loan Amount |
| r = | rate of interest |
| n = | no of periods |
| P = | r (PV) |
| 1 - (1 + r )-n | |
| 8881.62 = | r% *85000 |
| 1 - (1 / (1 +r%)^30) | |
| 8881.62/85000 = | r% |
| 1 - (1 / (1 +r%)^30) | |
| r = | 9.82% |
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