The Formula for Finding the Monthly Payment for an Amortized $M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$

question 24

Short Answer

The formula for finding the monthly payment for an amortized loan is:
$M = P \left[ \frac { R } { 1 - ( 1 + R ) ^ { - N } } \right]$
where M is the monthly payment, R is the interest rate PER MONTH, and N is the number of months. Find the monthly payment on a home loan of $100,000 at 6% for 30 years.

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Definitions:

Electrochemical

Pertaining to the processes that involve both electrical and chemical changes.

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Negatively charged ions (Cl-) that play key roles in bodily functions such as maintaining fluid balance and transmitting nerve impulses.

Prolactin

A hormone produced by the pituitary gland involved in milk production, reproductive functions, and immune system regulation.