Mortgage Calculator

Illustration of Mortgage Amortization





Simple Finance: A mortgage of $50,000 is specified with a term of 30 years at 8% desire. The regular payment is $366.88. For the to start with 3 payments, (a) determine the harmony on the principal just after each individual payment, and (b) break up the payment into the amounts paid on the principal and desire.

18 comments

  1. How can one calculate the .734?

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  2. th for posting this vid.

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  3. math is so fun!

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  4. I come up .245*30 =7.35 or if you were saying 3 payments as quarterly at 8% I still don't come with your math

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  5. Thanks bub!!

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  6. How did I miss this guy? He is great!

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  7. Thank you so much. This had no link to the question I was trying to solve but it was a great help. P.S. please ignore the name on my user.. Google will not let me change it. ..again. :/

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  8. Do you have a link to the loan table you were talking about?

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  9. type on youtube search : islamic banking Ethica
    the first video is something

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  10. Ohh okay, now that method was way more reliable and understandable. Thanks for the help

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  11. A timeline helps here. The key to these is to think in terms of the compounding periods. Quarterly means four periods a year, and we will break the annual interest rate into 4 equal parts. So i=1.5% or .06/4 = .015. Also we have 5 periods (15 mo = 1 yr + 3 mo = 4 + 1 periods). Your factor then becomes

    a = [(1-(1.015)^-5)/.015] (this is more standard; you see tables of these in real estate or loan offices)

    You would use 15/12 if compounding were annual (in theory).

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  12. okay thank you, can you just explain one quick thing thou. If a cash amount is compounded quarterly, does it mean that i would input [ (.06/.25)]; and then since it would go for 15 months, does it meant that i would input [(.06/.25)^(15/12)]? I am right, or do i have the period inputs wrong? Thanks in advance for any help.

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  13. I don't have a proper financial math playlist; this was a request. I'm actually teaching this now, so I might have more of these in the future.

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  14. I have to use this formula: P=V [ i/(1-(1+i)^-n)]
    The type of questions that require this one are those that ask you how long it would take to get to a certain $ amount if you current Investment/Deposit/Account is any cash amount compounded by a certain % by any period

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  15. Professor,
    For me the issue is how to set up the equations to reach the results. for example I called my payment "x", I assume a made up loan amt, say 1000 and i=.1 but even with that it gets really messy really fast. Any advise would be greatly appreciated.

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  16. Indeed!! 😉

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  17. If you only knew one math fact, this should be it.

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  18. Interest is a biatch!!

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