Amortization Loan Formula
The Organic Chemistry Tutor・2 minutes read
John's monthly payment on a $300,000 loan with a 6% interest rate over 30 years is $1,798.65. Throughout the loan term, he will pay a total of $647,514, with $347,514 going towards interest.
Insights
- John's monthly payment for his $300,000 loan at a 6% annual interest rate over 30 years is $1,798.65, calculated through a specific formula involving principal, interest rate, and loan term.
- Throughout the 30-year loan period, John will pay a total of $647,514, with the interest comprising $347,514, derived by subtracting the initial loan amount from the overall payment.
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Recent questions
How do you calculate monthly loan payments?
Monthly payment = (principal x annual interest rate / 12) / (1 - (1 + r / 12)^(-NT))
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Summary
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"John's $300,000 Loan: $1,798.65 Monthly Payment"
- The monthly payment for John's $300,000 loan with a 6% annual interest rate over 30 years is $1,798.65, calculated using the formula: monthly payment = (principal x annual interest rate / 12) / (1 - (1 + r / 12)^(-NT)).
- Over the 30-year loan term, John will pay a total of $647,514, with the total interest amounting to $347,514, calculated by subtracting the original loan value from the total amount paid.
