#### JamesVU2000

##### Member

As the name suggests, fixed rate mortgage carries constant interest rate throughout its lifetime with level payments. The monthly repayment amount for a fixed rate mortgage is computed such that its present value when discounted at the monthly compounded mortgage (fixed) rate equals the original amount of the loan borrowed by the obligor. The formula can be depicted mathematically as:

1

tenure of the loan in years.

For example: Calculate fixed rate mortgage payment with following parameters:

Principal Amount: (0) = $100,000

Rate of Interest: = 4% per annum

Loan Tenure: = 30 Years

How do find the monthly payment with calculator? I don’t understand how to input the formula.

Thanks

James