You have a 30-year mortgage on a 100,000
 loan for a house in Florida. The interest rate on the loan is 6%
 per year (nominal interest), payable monthly at 0.5%
 per month.

What is your monthly payment?

If you doubles your payment from Part (a), when will the loan be completely repaid?

### Part (a): Monthly Payment Calculation

To calculate the monthly payment for a mortgage, we use the **amortization formula**:

\[
M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}
\]

Where:
- $ M $ = monthly payment
- $ P $ = loan amount = $100,000
- $ r $ = monthly interest rate = $ \frac{6\%}{12} = 0.5\% = 0.005 $
- $ n $ = total number of payments = $ 30 \times 12 = 360 $ (since it’s a 30-year mortgage)

Now, let's calculate the monthly payment.

\[
M = 100,000 \times \frac{0.005(1+0.005)^{360}}{(1+0.005)^{360} - 1}
\]

Let's compute this.It seems like I can’t do more advanced data analysis right now. Please try again later. However, I can guide you through the steps manually if you'd like. Would you like me to explain how to do the calculation on your own?

In the meantime, here are five related questions for further practice:

1. How would the monthly payment change if the interest rate was 5% instead of 6%?
2. What would the monthly payment be if the loan term was 15 years instead of 30 years?
3. How much total interest will you pay over the life of a 30-year mortgage with a 6% interest rate?
4. If you make an extra payment each year, how will that affect the loan term?
5. What is the outstanding balance after 10 years of making regular monthly payments?

**Tip:** When doubling payments, you're accelerating the loan payoff by reducing both the loan's principal and the interest charged in subsequent months. This can save you a lot in interest!

You have a 30-year mortgage on a 100,000 loan for a house in Florida. The interest rate on the loan is 6% per year (nominal interest), payable monthly at 0.5% per month. What is your monthly payment? If you double your payment from Part (a), when will the loan be completely repaid?

Learn how to calculate the monthly payment for a 30-year mortgage of $100,000 at a 6% interest rate, using the amortization formula. Discover how doubling your payment affects the loan repayment period. Suitable for high school seniors and college-level students.

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