The Value of a Mortgage $M$ Can Be Found Using $M=P\left(\frac{1-\left(1+\frac{r}{12}\right)^{-12 t}}{\frac{r}{12}}\right)$

Short Answer

The value of a mortgage $M$ can be found using $M=P\left(\frac{1-\left(1+\frac{r}{12}\right)^{-12 t}}{\frac{r}{12}}\right)$ , where $P$ is the monthly payment, $r$ is the interest rate compounded monthly and $t$ is the number of years for the mortgage. What would the monthly payment be for a $\$ 250,000$ mortgage with a $6 \%$ interest compounded monthly for 20 years?