Monthly Payment Formula Worksheet



Monthly Payment Formula Worksheet

Name _____________________________________

1. Lowest interest rate (r) for a 15 year term mortgage. ________________

n = 180

2. Price of the home. __________________________

3. Amount borrowed

P = Price of the home –% down payment * price of the home. ____________________

4. [pic] (round to 6 decimal places) _________________________________________________

5. Calculate the payment R by using the following formula: [pic]

6. Lowest interest rate (r) for a 30 year term mortgage. ________________

n = 360

7. Price of the home from step 2. __________________________

8. Amount borrowed

P = Price of the home – % down payment * price of the home. ____________________

9. [pic] (round to 6 decimal places) _________________________________________________

10. Calculate the payment R by using the following formula: [pic]

11. Use the table to summarize your information.

Summary

| |15 year term |30 year term |

| | | |

| |n = 180 months |n = 360 months |

|P = amount borrowed | | |

| | | |

|[pic] | | |

|round to 6 decimal places | | |

|R = payment | | |

| | | |

| | | |

Calculate the difference in the payment between the 15 and 30 year term mortgages. Are the differences in payments what you expected? Explain.

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