Use PMT P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%. P=$209,000 - $41,800 = $167,200 Down Pymt= $41800 Rate= 9.5% or 0.095 Time = 30 years fixed Points= 3 or 0.03 (167200*0.03=5106) N=12 167200(0.095/12) = 1323.666666666667 divided by: (1-(1+0.095/12)-12(30) = -360 (1-(1.007916666666667)-360 = HOW DO I CALCULATE this, this is where I am getting stuck on the calculator. I keep getting this answer 17.09486179680438, when I do 1.007916666666667-360 Please help me understand what I'm doing wrong on the bottom calculation.
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Use PMT P(r/n) / (1- (1+r/n)-nt to determine regular pymt amt, rounded to nearest dollar. Home cost $209,000, bank requires 20% down pymt and 3pts at closing. The cost of the home is financed for 30-year fixed rate at 9.5%.
P=$209,000 - $41,800 = $167,200
Down Pymt= $41800
Rate= 9.5% or 0.095
Time = 30 years fixed
Points= 3 or 0.03 (167200*0.03=5106)
N=12
167200(0.095/12) = 1323.666666666667
divided by: (1-(1+0.095/12)-12(30) = -360
(1-(1.007916666666667)-360 = HOW DO I CALCULATE this, this is where I am getting stuck on the calculator. I keep getting this answer 17.09486179680438, when I do 1.007916666666667-360
Please help me understand what I'm doing wrong on the bottom calculation.
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