I need help calculating a mortgage payment.  What would your payment be for a 15-year, $150,000 mortgage at 9% compounded annually assuming payments are made twice a month?  

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This problem is an annuity problem.  An Annutity is a finite series of equal payments that occur at regular intervals. You can use the following formula to compute payments

 My underlining format did not work out well, but here it is.

C =       PV*R            divided by

      1- 1/ (1+r)^t

Where R = is rate T is time or intervals, PV is present value, and C is payment amounts.  You can use financial calculator and just put in values (you can buy a financial calulator for $30 or use online equivalent software), or a standard calculator and this formula to get your...

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mr-angel eNotes educator | Certified Educator

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