For example use a loan amount of 400000 and a rate of 6 percent. The payment on a loan can also be calculated by dividing the original loan amount PV by the present value interest factor of an annuity based on the term and interest rate of the loan. Basic mortgagehtml math formulas and equations are listed here.
For example if you have a 15-year loan and make monthly payments.
In the formula the number of months will be designated by the letter n What is My Interest Rate. This formula is conceptually the same with only the PVIFA replacing the variables in the formula that PVIFA is comprised of. Newtons Method takes only four iterations to reach an answerof i 00094007411 per month. Note that the carat indicates that youre raising a number to the power indicated after the carat.