Can anyone tell me the steps to solve this problem?
Loan is for $85,000.00. Term is 30 years, or 360 months. Monthly payment is $8,273.29. How do I calculate the interest rate?
I’m sure it is a very simple equation but I’m just not getting it right now - brain freeze!
Please, please, please tell me that this is not a deal you’re working!
The interest rate is about 117.25%!!! That’s just a little on the steep side!
One of your numbers must be wrong!
WOW! My calculator just exploded! :o
Ha ha - the calculator exploding is cracking me up!
No, no. . . NO!!! this is NOT A DEAL. This is a math problem I am trying to figure out for a course.
I’m just stuck on the formula and figured - why not go to those who are in the know on this forum?
I think I did write it wrong - it’s a $85,000 loan for payments of $8,273.59 per YEAR (oops!) for 30 years - obviously divide that by 12 to get amount for payment per month. What’s the interest rate?
Please, if someone could give me the formula, my calculator has not exploded yet and I can solve for it!
THANK YOU IN ADVANCE!
Thanks Patrick, but that’s not going to work - I have to show my work and how I got the answer.
Do you have a formula for me I can use?
try this site http://www.hughchou.org/calc/formula.html
It is way over my head. That is why we have calculators! :hammerhead:
Wow, of course for the interest rate he couldn’t have just a simple equation.
I think Excel will have to be the ticket here! Thanks for the help, I do appreciate it!
Yes, I believe so…as long as he allows the use of Excel, I believe there is an amoritzation capability…