Answer:
The monthly payment for the loan amount for 20 years is $806.167
Step-by-step explanation:
The principal loan amount= $ 50,000
The rate of interest = 7 %
the time period of loan = 20 years = 20 × 12 = 240 months
let the amount after 20 years = $ A
From Compounded method
Amount = Principal × [tex](1+\dfrac{\textrm rate}{100})^{\textrm Time}[/tex]
or, A = 50,000 × [tex](1+\dfrac{\textrm 7}{100})^{\textrm 20}[/tex]
or, A = 50,000 × [tex](1.07)^{20}[/tex]
Or, A = 50,000 × 3.8696
∴ Amount = $ 193,480
So, The amount after 20 years = $ 193,480
The monthly payment amount = $ [tex]\frac{193480}{240}[/tex] = $ 806.167
Hence The monthly payment for the loan amount for 20 years is $806.167 Answer
