BrutusAI Result: What Would A Payment Be For A 900,000 Loan For

what would a payment be for a 900,000 loan for

To calculate the monthly payment for a loan of $900,000 over 15 years at an interest rate of 9%, you can use the formula for monthly payments on an amortizing loan:

[ M = P \frac{r(1 + r)^n}{(1 + r)^n - 1} ]

Where:

(M) = monthly payment
(P) = loan principal (amount borrowed): $900,000
(r) = monthly interest rate (annual interest rate divided by 12): ( \frac{0.09}{12} = 0.0075)
(n) = total number of payments (loan term in months): (15 \times 12 = 180)

Steps to Calculate

Calculate Monthly Interest Rate (r): [ r = \frac{0.09}{12} = 0.0075 ]
Total Number of Payments (n): [ n = 15 \times 12 = 180 ]
Calculate Monthly Payment (M): [ M = 900000 \frac{0.0075(1 + 0.0075)^{180}}{(1 + 0.0075)^{180} - 1} ]
- Calculate ( (1 + r)^{n} ): [ (1 + 0.0075)^{180} \approx 3.5849 ]
- Now, substituting this value into the payment formula: [ M = 900000 \frac{0.0075 \times 3.5849}{3.5849 - 1} = 900000 \frac{0.0268867}{2.5849} \approx 900000 \times 0.010395 \approx 9355.77 ]