How much would a $150,000 mortgage payment be amortized over 30 years at a 3.45% interest rate using the HP 12c?

To determine the monthly mortgage payment for a $150,000 loan amortized over 30 years at a 3.45% interest rate, one can employ the formula for monthly mortgage payments or a financial calculator like the HP 12c.

In this case, the key data points are the loan amount of $150,000, an interest rate of 3.45%, and the loan term of 30 years (which equates to 360 monthly payments). When using the HP 12c, you'd input the interest rate as a monthly rate (annual rate divided by 12), which would be approximately 0.002875 (3.45% / 12). The total number of payments would be 360.

The formula used to calculate the monthly payment is:

[ M = P \cdot \frac{r(1 + r)^n}{(1 + r)^n - 1} ]

where:

• M is the total monthly mortgage payment,

• P is the loan principal (amount borrowed),

• r is the monthly interest rate (annual rate / 12),

• n is the number of payments (loan term in months).

When these inputs are processed, the calculation results in a monthly payment of