Here we determine the maximum amount that can be spent to develop the unit and rent it for $100/month. To calculate the maximum amount that can be borrowed (P) for a specified monthly payment (c), we can use the following relation:
P
=
1
−
(
1
+
r
)
−
N
r
c
{\displaystyle
\begin{align}
P & {} = \frac{1-(1+r)^{-N}}{r}c
\end{align}
}
where r is the monthly interest rate in decimal form and N is the loan duration in months.[1]
Finance Tables [ ] The following tables were generated using the equation indicated above.
30 Year Loan [ ]
Principal ($)
Interest Rate (%)
Monthly Payment ($)
20,946.12
4
100
18,628.16
5
100
16,679.16
6
100
15,030.76
7
100
13,628.35
8
100
18,851.51
4
90
16,765.35
5
90
15,011.25
6
90
13,527.68
7
90
12,265.51
8
90
16,756.90
4
80
14,902.53
5
80
13,343.33
6
80
12,024.61
7
80
10,902.68
8
80
14,662.29
4
70
13,039.71
5
70
11,675.41
6
70
10,521.53
7
70
9,539.84
8
70
12,567.67
4
60
11,176.90
5
60
10,007.50
6
60
9,018.45
7
60
8,177.01
8
60
10,473.06
4
50
9,314.08
5
50
8,339.58
6
50
7,515.38
7
50
6,814.17
8
50
8,378.45
4
40
7,451.26
5
40
6,671.66
6
40
6,012.30
7
40
5,451.34
8
40
6,283.84
4
30
5,588.45
5
30
5,003.75
6
30
4,509.23
7
30
4,088.50
8
30
25 Year Loan [ ]
Principal ($)
Interest Rate (%)
Monthly Payment ($)
18,945.25
4
100
17,106.00
5
100
15,520.69
6
100
14,148.69
7
100
12,956.45
8
100
17,050.72
4
90
15,395.40
5
90
13,968.62
6
90
12,733.82
7
90
11,660.81
8
90
15,156.20
4
80
13,684.80
5
80
12,416.55
6
80
11,318.95
7
80
10,365.16
8
80
13,261.67
4
70
11,974.20
5
70
10,864.48
6
70
9,904.08
7
70
9,069.52
8
70
11,367.15
4
60
10,263.60
5
60
9,312.41
6
60
8,489.21
7
60
7,773.87
8
60
9,472.62
4
50
8,553.00
5
50
7,760.34
6
50
7,074.35
7
50
6,478.23
8
50
7,578.10
4
40
6,842.40
5
40
6,208.27
6
40
5,659.48
7
40
5,182.58
8
40
5,683.57
4
30
5,131.80
5
30
4,656.21
6
30
4,244.61
7
30
3,886.94
8
30
20 Year Loan [ ]
Principal ($)
Interest Rate (%)
Monthly Payment ($)
16,502.19
4
100
15,152.53
5
100
13,958.08
6
100
12,898.25
7
100
11,955.43
8
100
14,851.97
4
90
13,637.28
5
90
12,562.27
6
90
11,608.43
7
90
10,759.89
8
90
13,201.75
4
80
12,122.03
5
80
11,166.46
6
80
10,318.60
7
80
9,564.34
8
80
11,551.53
4
70
10,606.77
5
70
9,770.65
6
70
9,028.78
7
70
8,368.80
8
70
9,901.31
4
60
9,091.52
5
60
8,374.85
6
60
7,738.95
7
60
7,173.26
8
60
8,251.09
4
50
7,576.27
5
50
6,979.04
6
50
6,449.13
7
50
5,977.71
8
50
6,600.87
4
40
6,061.01
5
40
5,583.23
6
40
5,159.30
7
40
4,782.17
8
40
4,950.66
4
30
4,545.76
5
30
4,187.42
6
30
3,869.48
7
30
3,586.63
8
30
15 Year Loan [ ]
Principal ($)
Interest Rate (%)
Monthly Payment ($)
13,519.21
4
100
12,645.52
5
100
11,850.35
6
100
11,125.60
7
100
10,464.06
8
100
12,167.29
4
90
11,380.97
5
90
10,665.32
6
90
10,013.04
7
90
9,417.65
8
90
10,815.37
4
80
10,116.42
5
80
9,480.28
6
80
8,900.48
7
80
8,371.25
8
80
9,463.45
4
70
8,851.87
5
70
8,295.25
6
70
7,787.92
7
70
7,324.84
8
70
8,111.53
4
60
7,587.31
5
60
7,110.21
6
60
6,675.36
7
60
6,278.44
8
60
6,759.61
4
50
6,322.76
5
50
5,925.18
6
50
5,562.80
7
50
5,232.03
8
50
5,407.69
4
40
5,058.21
5
40
4,740.14
6
40
4,450.24
7
40
4,185.62
8
40
4,055.76
4
30
3,793.66
5
30
3,555.11
6
30
3,337.68
7
30
3,139.22
8
30
10 Year Loan [ ]
Principal ($)
Interest Rate (%)
Monthly Payment ($)
9,877.02
4
100
9,428.14
5
100
9,007.35
6
100
8,612.64
7
100
8,242.15
8
100
8,889.32
4
90
8,485.32
5
90
8,106.61
6
90
7,751.37
7
90
7,417.93
8
90
7,901.61
4
80
7,542.51
5
80
7,205.88
6
80
6,890.11
7
80
6,593.72
8
80
6,913.91
4
70
6,599.69
5
70
6,305.14
6
70
6,028.84
7
70
5,769.50
8
70
5,926.21
4
60
5,656.88
5
60
5,404.41
6
60
5,167.58
7
60
4,945.29
8
60
4,938.51
4
50
4,714.07
5
50
4,503.67
6
50
4,306.32
7
50
4,121.07
8
50
3,950.81
4
40
3,771.25
5
40
3,602.94
6
40
3,445.05
7
40
3,296.86
8
40
2,963.11
4
30
2,828.44
5
30
2,702.20
6
30
2,583.79
7
30
2,472.64
8
30
References [ ] 