How do you calculate monthly payments?

1 Answer:
  • johny low
    To calculate the monthly payment, convert percentages to decimal format, then follow the formula:
    1. a: $100,000, the amount of the loan.
    2. r: 0.005 (6% annual rate—expressed as 0.06—divided by 12 monthly payments per year)
    3. n: 360 (12 monthly payments per year times 30 years)
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