The payment, P, at the annual rate, r, on the mortgage amount, M, that runs for t years is given by the formula:
, where n is the number of payments per year.
1. What is the monthly payment on a house bought for $200,000 at 6.5% rate of interest for 30 years? Round your answer to the nearest whole number.
2. Kelly bought a house for $100,000 and pays the monthly payment of $800 at 8% rate of interest. How many months will it take Kelly to pay off her mortgage loan? Round your answer to the nearest whole number.
Read more: Algebra II interest rate word problem?
