In article <defnu3tflo9vv0qf7i1hv0tlj2gepa9fm8@[EMAIL PROTECTED]
>, j***@[EMAIL PROTECTED]
> Thanks, but I was trying to figure out how many months it would take
> to pay it off if the interest rate was 1% not 6.2%. I would keep
> making the $2633 payments though. I'll go through your explanation
> and try and figure it our for myself too.
>
> Thanks again.
>
> On Thu, 27 Mar 2008 10:44:25 -0400, "Greg Neill"
> <gneillREM@[EMAIL PROTECTED]
> wrote:
>
> >"mm" <j***@[EMAIL PROTECTED]
> wrote in message
> >news:cn9nu3l1jt1on01h083ek87vgr9nljld28@[EMAIL PROTECTED]
> >> What if: $430,000 home is financed at 6.2% over 30 years. I can
find
> >> out what the payments would be if the interest rate was 1% instead of
> >> 6.2%, ($1383 vs $2633), but what I can't find out is how many months
> >> it would take to pay off the loan assuming I kept making the same
> >> monthly payments ($2633).
> >>
> >> Is there an easy way to compute this or do you need a mortgage,
> >> finance calculator?
> >>
> >> Thanks
> >
> >Suppose P is the principle
> > I is the monthly payment
> > i is the interest rate (compounded monthly) in percent
> >
> >Let c = (i/100)/12 (interest rate per month)
> >
> >Then
> >
> > n = log(I/(I - P*c))/log(1+c)
> >
> >is (approximately) the number of months to pay off
> >the mortgage -- provided I haven't mucked up my
> >algebra!
> >
> >So in your case:
> >
> >P = 430000
> >I = 2633
> >i = 6.2
> >
> >c = 5.167 x 10^-3
> >n = 360.245 ---> round up ---> 361 months
> >
> >That's pretty close to 30 years.
Poke in the 1% numbers and I get around 173.5 months (or 14.5 years),
which is pretty close to the 176 months that
Sylvian calculated using a slightly different formula.
Mike
>
>
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