M = P ( R / 1 - (1+ R) ^ -N)
P = mortgage amount (50,000)
R = monthly interest rate (3.42 % / 12 = .285%)
N = number of months (180)
The annual interest rate must be converted to a monthly rate and the length of the mortgage must be converted to the number of months
When I type this into my calculator I get 14250. There is no way that the monthly mortgage payment is 14250 per month. What am I doing wrong here?
Read more: Calculate monthly mortgage payments with this formula? - 1
