Question

Find the monthly payment for the loan. Finance $500,000 for an apartment complex with a 12.3% 10-year loan.
Please round the answer to the nearest cent. The monthly payment is ?​

Answer 1

Using it's formula, it is found that the monthly payments for the loan of the apartment is of $7,260.50.

What is the monthly payment formula?

It is given by:

$A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}$

In which:

• P is the initial amount.

• r is the interest rate.

• n is the number of payments.

In this problem, the parameters are given as follows:

P = 500000, r = 0.123, n = 12 x 10 = 120.

Hence:

r/12 = 0.123/12 = 0.01025.

Then, the monthly payments will be of:

$A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}$

$A = 500000\frac{0.01025(1+0.01025)^{120}}{(1+0.01025)^{120} - 1}$

A = 7260.50.

More can be learned about the monthly payment formula at https://brainly.com/question/26267630

#SPJ1