Find the monthly house payments necessary to amortize the following loan. Then calculate the total payments and the total amount of interest paid.

198,000 

at 

6.93

for 

15

years




To calculate the monthly house payments (or mortgage payments) necessary to amortize the loan, we can use the amortization formula:

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

Where:
- $M$ is the monthly payment,
- $P$ is the loan amount (principal),
- $r$ is the monthly interest rate (annual interest rate divided by 12),
- $n$ is the total number of payments (loan term in years multiplied by 12).

Given dataTo calculate the monthly house payments (or mortgage payments) necessary to amortize the loan, we can use the amortization formula:

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

Where:
- $M$ is the monthly payment,
- $P$ is the loan amount (principal),
- $r$ is the monthly interest rate (annual interest rate divided by 12),
- $n$ is the total number of payments (loan term in years multiplied by 12).

Given 
- $P = 198,000$,
- Annual interest rate $= 6.93\%$,
- Loan term $= 15$ years.

### Step 1: Find the monthly interest rate.
\[
r = \frac{6.93}{100 \times 12} = \frac{6.93}{1200}
\]

### Step 2: Calculate the total number of payments.
\[
n = 15 \times 12 = 180 \text{ payments}
\]

### Step 3: Calculate the monthly payment using the formula. 
Once we have the monthly payment, we can compute the total payments and the total interest.

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Calculate monthly mortgage payments for a $198,000 loan at 6.93% interest over 15 years. Learn how to amortize a loan and determine total payments and interest paid with a step-by-step solution.

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