Calculate Monthly Payments For Mortgage or Annuity Part A Correct Formula PV=R((1-(1+i)^(-n))/i)

Correct Answer is then 1367.23 for monthly payments as written by my Subscriber. Thanks
Excellent example to understand the concept.
Watch Part B of this video also for renewal of mortgage. • Mortgage Renewal After...
Annuity Future Value: • Annuity and Future Val...
#annuity_FutureValue_mortgage #financial_applications #simpleinterest #compoundinterest #futurevalue #financialliteracy #AnilKumar #GlobalMathInstitute #MPM2d_DataManagement
/ @mathematicstutor
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Present Value P of an Annuity of n payments of R each at the end of consecutive interest periods with interest compounded at a rate i per period is given by the formula: PV=R((1-(1+i)^(-n))/i)
Annuity and Future Value: • Annuity and Future Val...
Related Example: • Calculate Monthly Mort...
Part B: • Mortgage Renewal After...
Note the correction in the Formula of PV. Please correct the formula: PV = R[1 - (1 + i)^(-n)]/i
In your calculations use (1 + i) and not (1 - i).
Correct Answer is then 1367.23 for monthly payments as written by my Subscriber. Thanks
Excellent example to understand the concept.
Watch Part B of this video also for renewal of mortgage. • Mortgage Renewal After...

[@RadhikaMeera]

Thank you for the explanation , yes it is tricky sometimes to know which formula to use PV or FV , but seeing your video it seems to make sense to use PV ,

[@anthonysantiago7629]

thank you for the lesson. deriving the formula is much more useful than remembering equations!

[@digthewarmth]

The PV formula is actually PV = R * [1 - (1+i)^(-n)] / i . The maker of the video added the note with annotations, but I couldn't see annotations when watching on my phone.

[@MathematicsTutor]

digthewarmth Thanks for the feedback. It is good to know that on i-phone annotation can't be seen.

[@digthewarmth]

I'm actually using Android haha, but yea no problem.

[@bujanginin9971]

Wrongly formula...because he wrote (1-i)-n...should be (1+i)-n

[@sonamkhan426]

@@MathematicsTutor u mistakenly write (-) instead of (+) im formula its 1+i not 1-i

[@jandogroniloa.881]

@@sonamkhan426 I'm glad i saw these comment, because i struggled thinking why my answer is negative, thanks...

[@MathematicsTutor]

List of related videos: kzbin.info/www/bejne/nmi0anacbt6Cbac

[@licdoarshuali]

Dear Sir you are doing wonderful job on youtube by explaining complex problems in a simple manner, all the very best for your future endeavours!!!

[@Konvinced89]

Thank you for sharing this, I got stuck on one of the last steps and this helped me finish the solution. Very informative video.

[@MathematicsTutor]

Thanks for appreciation. Good to know that it could be of help

[@adam.gizlin]

The video much appreciated! Everything worked out like a charm, though I used a different formula, a bit different. ^^

[@JakeMerw]

Thanks for showing your work on the calculations for the monthly payments.

[@MathematicsTutor]

Thanks. Here is an example with calculations shown on calculator kzbin.info/www/bejne/l2Gum31vj8R7n7c

[@RadhikaMeera]

Yes can get confusing to use PV or fav , but now it’s clear

[@akanshakhandelwal]

WOW! Really good problem to understand mortgage concepts.

[@zzlagond6438]

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[@dasartattack]

Thank u 4 ur suggestions sir😎👏👏

[@ayshasiddika5365]

Sir u r awesome Thanks a million

[@donmoghnieh90]

You just saved me from failing my final exam. Thank you sir

[@MathematicsTutor]

Congratulations and Thanks

[@nirvanichand9352]

When I calculate, I get a negative number in between and the answer does not match. Please help!

[@ravenlayug5326]

Thank you brother 😊❤️

[@ZorbatheGreek08]

the correct answer you specified in your description under the video is incorrect. Answer I got was 1467.23

[@eychaz_k8912]

can i use this step for loan car? but the others information and question is same like this question

[@alexisf1049]

Keep it up! big help!! thank you

[@MathematicsTutor]

My Pleasure. Thanks for appreciation

[@annj.927]

Hi, could you please help to explain what’s J1 rate mean, J 12. And J 4....and what is shift meaning in mortgage payment, also what’s EFF% meaning? Thank you!

[@dasartattack]

Thank u sir

[@debarghasingha5297]

Thank you sir

[@rajendradhokare6316]

What would be the monthly payment for the same problem if the rate of interest is 8% compounded semi anually?

[@nhitc6832]

That's Canadian mortgage. You just need to figure out what the effective rate is, which is 8.16%. which gives you a monthly interest of 0.68%. Now use the same formula

[@alexcali5709]

thanks a lot! this helped

[@MathematicsTutor]

+alex cali Thanks

[@ahmed007Jaber]

Hi thank u for this Suppose there is a calculation for rent After say 5 year, the 1000 annual rent will go up by 2% annually. The contract is for 30 years, how would u approach it? To the value of the full contract and what has been paid for a set number of years especially given that for the first 5 years the rent is 1000

[@matyaskika2331]

legend

[@Mrkzio]

I love you hopefully I'll pass 2moro because of you.

[@eliavtchonev6909]

you probably didn't, seeing as his formula was wrong lol. now I know that a random dude failed a test 3 years ago 😂

[@planetdelap2948]

This is an algebra question. Can someone show how to get that R by itself? Thank you.

[@erikamone9346]

I don’t understand where the 1’s in the formula went? Did you distribute them ?

[@wasimakram9905]

No one ever explainef how to solve power part manually.Explain to the power part calculation manually.

[@sheinp9056]

do we have any formula to find no of months

[@Jusrandumvids]

I dont know how to calculate the last part

[@ldsgermanshepherdboy9272]

Apparently I am still getting this wrong as I have gotten a negative of the equation....:/ I punch in [1-(1+0.08/12)^(-300)]/ 190,000(0.08/12). What am I typing in wrong to my calculator to get a negative answer?

[@sengtouch3812]

i have an exercise but i a little bit long that's why i cant solve it can u help me please?

[@MuffinSkillz]

What if interest rate is not compounded monthly but fixed

[@Effental89]

It's pretty frustrating when you dont show how to do this also on a calculus exactly

[@MathematicsTutor]

Please correct the formula: PV = R[1 - (1 + i)^(-n)]/i In your calculations use (1 + i) and not (1 - i).

[@swifterbator8355]

What happens if the interest rate had been changed to let's say 5% after 15 years? How would you solve that?

[@nursomani3998]

Is the answer 138,200 for part B?

[@ariftanoli9768]

Thanks for correcting the mistake.

[@lamunupatricia146]

Stuck

[@MathematicsTutor]

@@lamunupatricia146 Try this: kzbin.info/www/bejne/boOpl4WwqpyFhM0 Thanks

[@MathematicsTutor]

Hello

[@monlivreetmoi]

BIG UP

[@ayanmayu336]

Mortgage amount: 30,000 Years: 25 Interest rate 12% After 9years interest rate changes to 10% how can i get new monthly repayment ?

[@phindilemotshwene9015]

im getting a neg value

[@sm-df7rq]

Something is wrong My answer is 1367.23 for monthly payments

[@THENETESH]

How to calculate that -n?

[@MathematicsTutor]

Watch Part B: kzbin.info/www/bejne/ioWqd5iqfNSEi9E Thanks

[@heatherjustice8159]

How can I calculate a monthly payment using 365/365 and not 365/360?

[@thanhtrucdo9937]

360 days

[@ainaamirahasni]

Is it the value of - 300 is the PMT ?

[@MathematicsTutor]

Here is related video: kzbin.info/www/bejne/qoDVmItuf9xnn9U Thanks

[@fatimahzahraabdulhamid448]

my answer is math error

[@peteflowers7711]

Is 190,000 dollars house price or down payment?

[@MathematicsTutor]

190,000 is the balance amount to be paid after down payment is done. thanks

[@allwyndsouza4219]

The words are coming on screen so it can't been

[@RadhikaMeera]

Sir do you have an Instagram account for students to follow

[@twlson49]

according to my calculator the correct answer is 1466.45

[@RadhikaMeera]

Sir do you have a Instagram page .

[@vaggelismpeletsas7086]

There is a much easier way of calculating the monthly payment

[@HoldOn987]

Sir i think you should check back your formula. Seem wrong to me

[@TheMaster47x]

8% compound not simple

[@nicolebaja1593]

I can't see the solution because of the subtitle🙁

[@najamusman2095]

If it is compounded annually then what we do?

[@MathematicsTutor]

Please check this video: kzbin.info/www/bejne/fIrIn2Vrj7WMhLc Thanks

[@MathematicsTutor]

Also this playlist: kzbin.info/aero/PLJ-ma5dJyAqrWspcH5wXSOcsqWZhBd3OW

[@ganeshjadhav1900]

Answer getting wrong Even after the author corrected the formula

[@olwethunqindi8488]

Hello what happens when the payments before they are due ?

[@MathematicsTutor]

Will post a video on that. Thanks

[@olwethunqindi8488]

@@MathematicsTutor hope you heard my question ,I meant to ask what happens to payments when they stop before they are due .For exactly say they start immediately and stop after 20 years but the annuity is said to be only due after 25 years .

[@olwethunqindi8488]

*example*

[@olwethunqindi8488]

@@MathematicsTutor hey sir been waiting for you video can you please upload

[@samz8833]

When i put this into my calculator i get -196.. why?

[@ajmalaboo7119]

i also got the same

[@MathematicsTutor]

+ajmal aboo Please correct the formul: PV = R[1 - (1 + i)^(-n)]/i In your calculations use (1 + i) and not (1 - i).

[@MathematicsTutor]

+sam Master Please correct the formula PV = R[1 - (1 + i)^(-n)]/i In your calculations use (1 + i) and not (1 - i).

[@dessertspring6206]

15”, you can explain in 1” video. Don’t repeat so much and stick to the core.

[@uilenbal]

It would be better to just delete the video because of the mistake. Probably causes more confusion than that it (effectively) helps people

[@KamogeloMaleka-zr9uj]

😢only problem is you talk alot

[@munashenyaya2900]

Your formulae is wrong

[@SeamlessVideography]

You need to get to the point ASAP you talk for ever!!!

[@airplan]

The notation and algebra is totlly wrong!!! remove this video!!!

[@debarghasingha5297]

Thank you sir