R is the periodic interest rate divided by 100 nominal annual interest rate also divided by 12 in case of monthly installments and. 1 Loan Outstanding after 12 Months P 1 r n 1 r m 1 r n 1 1000 1 1 24 1 1 12 1 1 24 1. The formula for mortgage payments is P L c 1 cn 1 cn - 1 where L is the loan value n is the total number of payments over the life of the loan and c is the interest rate.
The interest rate is 6 per annum or yearly.
P is defined as the. P is defined as the. The formula is as follows. Monthly mortgage payments are calculated using the following formula.