Mortgage

Let  dollars be borrowed at an interest rate of  per month, where  is the annual rate divided by 12, and assume the mortgage needs to be paid back in  months. Then the monthly payment is given by

For example,  on a 360-month (30-year) mortgage at a monthly rate of  ( annually) would require a monthly payment of

REFERENCES:

Zwillinger, D. (Ed.). CRC Standard Mathematical Tables and Formulae, 30th ed. Boca Raton: CRC Press, 1996.