Matt Johnson takes out a mortgage for $240,000. There is a loan of 30 years at $1,200 per month. This gives a total interest of $182,000. What is the APR using the formula?

Question

owlfred · Answer

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amistre64 · Answer

182+240 = 240(1+.%)^30

422/240 = (1+.%)^30

30rt(211/120) = 1 + .%

30rt(211/120) - 1 =  .% =abt  .01899

APR might be abt 1.9%