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SMAlvarez wrote:
Ok so the "the monthly payment" is 30*12*PMT(.06/12,30*12,255000)? and "the total amount paid in 30 years" is $300,000? and "total interest paid" - whatever 300,000 - 255,000 is? Is that true? No. SMAlvarez wrote later: maybe im wrong. Is the monthly payment whatever the answer is to PMT(.06/12,30*12,255000) Yes, with the caveats that I mentioned in an earlier posting. The monthly payment is probably either PMT(6%/12,30*12,255000) or PMT(RATE(12,0,-1,1+6%),30*12,255000), depending on what your teacher meant by "6% APR". I suspect your teacher did mean "6% annual interest rate". In that case, your formula is correct. (Note that .06/12 is the same as 6%/12.) I had said that 30*12*PMT(...) is the total amount paid in 30 years. That is very much more than $300,000. Enter the formula =30*12*PMT(...) into a cell and see the result. And I said that the "total interest paid" is the "total amount paid" minus the principal ($255,000). That is =30*12*PMT(...)-255000. |
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