HELP with a math project - amoritization?

I need help with math how do I raise to the -360 it is an amoritization project I am using an online calculator http://www.math.com/students/calculators/source/sc... I need to raise 1.00583 to neg 360 then I need to look

_____898.333_____________

1- (1.00583) -360

My end result should be a mortgage paymetn of 1024.00

for a 154K house at 7% interest and 30 years but I am getting a payment of 897.07 per month which is wrong - because i compared the caculations with online mortgage calculators- this being a math class i have to show my work.... HYElp !

4 Answers

Relevance
  • Merlyn
    Lv 7
    1 decade ago
    Favorite Answer

    better idea, don't use that calculator

    get the power toy calculator for windows http://www.microsoft.com/windowsxp/downloads/power...

    the expression you need is 898.333 / (1 - (1.00583) ^ ( -360))

    another idea is to get a TI emulator. http://mathematics.mc.maricopa.edu/seims/TI-Emulat...

  • 1 decade ago

    It's easier if you use the PMT function in Microsoft Excel. When I crunched the numbers, I got a monthly payment of $1,020.43.

    Here's what I did:

    In Excel, click on ƒx on the standard toolbar.

    Click on Financial in the left window and PMT in the right window.

    Click OK.

    Now, just fill-in the blanks:

    Rate = 0.0058 (7%, or 0.07, divided by 12 months)

    Nper = 360 (30 yrs. x 12 mo./yr.)

    Pv = 154000

    Fv = 0

    Type = 0

    Click OK

    The answer will be negative (I don't know why), but for all intents and purposes, your monthly payment is shown to be $1,020.43.

  • 1 decade ago

    I believe your formula for computing the payment is incorrect.

    http://www.math.com/tables/general/interest.htm

    Scroll down to "Loan Balance"

    It should be

    B = A (1 + r/n)ʷ - P [(1 + r/n)ʷ - 1] / [(1 + r/n) - 1] where w=nt=12x30=360

    0 = (154000) (1 + .07/12)³⁶⁰ - P [(1 + .07/12)³⁶⁰ - 1] / [(1 + .07/12) – 1]

    Solve for P

    I worked it out and get payments of 1024.57

  • 1 decade ago

    Can you not use Windows calculator? Click view/scientific. It has "x^y" which works faster than this online one. You'd press 1.00583 [x^y] 360 [+/-] [=]

    same is true for your online calculator. it's printed [y^x] tho.

Still have questions? Get your answers by asking now.