## Monthly Payments

A local coffee shop is looking to expand its physical location footprint, and is shopping around for loans. What would be the estimated 5 year monthly payment on a $200,000 loan, with a 10% annual interest rate?

##
__
__**Hint**

**Hint**

$$$Monthly\:Payment=\frac{[rate*loan\:amount]}{[1-(1+rate)^{-(number\:of\:payments)}]}$$$

$$$Monthly\:Payment=\frac{[rate*loan\:amount]}{[1-(1+rate)^{-(number\:of\:payments)}]}$$$

$$$=\frac{[(.1/12)*200,000]}{[1-(1+(0.1/12))^{-(12months*5yr)}]}$$$

$$$=\frac{0.00833*200,000}{0.392211}$$$

=

**$4,250/month**
$4,250/month