Mortgage Calculation

ALEXII

I am having a one sided conversation with a financial provider and his superior as to what the answer to the following question should be.

How much should computed mortgage payments be, given the following parameters
Outstanding Amount : €186,839.08
Term : 20 Months
Interest Rate : 4.95% per annum

This is not a trick question!

Anybody care to provide an answer? If so, thanks in advance and please briefly outline methodology used in computing the answer.

maggy_thatcher

ALEXII wrote: »

I am having a one sided conversation with a financial provider and his superior as to what the answer to the following question should be.

How much should computed mortgage payments be, given the following parameters
Outstanding Amount : €186,839.08
Term : 20 Months
Interest Rate : 4.95% per annum

This is not a trick question!

Anybody care to provide an answer? If so, thanks in advance and please briefly outline methodology used in computing the answer.

Do you really mean 20 months? That's quite an aggressive payment plan (in the region of €9,400 a month).

EDIT - I went on to onus.ie and asked it:

Monthly Payment: 9751.85
Total Interest: 8197.92
Total Amount Repayable: 195037.00

rameire

9,751.85

open excel
type
=-pmt(4.95%/12,20,186839.08)

ALEXII

Hi maggy,

20 months is correct

Arises from coming off an interest only period.

dudara

Moved to Banking & Insurance & Pensions

dudara