Wk 22 - Sun - Yr 5
Justine’s first loan payment of $50 was taken this morning and I had second thoughts about it being too low, so I decided to recalculate. As you’ll see above, her weekly payment is now $476. This is how I did it.
- The mortgage was for $50,000 + the Initial Interest of $950 = $50,950
- I then divided that by the average mortgage length of 25 years = $2,038
- There are 30 days in my sim-year so I divided that by 7 to see how many weekly payments there are in my sim-year. That was 4.28
- So, $2,038 a sim-year, divided by 4.28 weekly payments = $476.17. Rounded down, that gives a mortgage payment of $476 per sim-week.
Are you confused yet? Lol! This doesn’t take into account the interest that will be added throughout the length of the mortgage though and unfortunately, I’m not smart enough to work that into the calculation. If anyone else knows though, please do tell! (I’m looking in your general direction @desiree-uk ). ;-)
I also made Justine pay an extra $426 to account for the first payment only being $50 but you’ll notice the loan now stands at $51,493, so $543 of interest has already been added on! I’ve no idea if this is going to work. Justine is definitely going to struggle with these payments if she only earns $15 a week lol!
Haha! You taking the mick? 😋
My brain! Too many numbers! lol. In my non-mathmatical-brained opinion, it all looks good :D