You want to buy a house that costs $285,000. You will make a down payment equal to 20 percent of the price of the house and fina

Question

2 years ago

5

You want to buy a house that costs $285,000. You will make a down payment equal to 20 percent of the price of the house and fina

nce the remainder with a loan that has an APR of 5.49 percent compounded monthly. If the loan is for 30 years, what are your monthly mortgage payments

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1 answer:

VARVARA [1.3K] · Answer 1 · 2022-02-24T06:08:18+03:00

Answer:

$1,293.13

Explanation:

For computing the monthly mortgage payments we use the PMT formula i.e to be shown in the attachments below:

Given that,

Present value = $285,000 - $285,000 × 20% = $228,000

Future value = $0

Rate of interest = 5.49% ÷ 12 months = 0.46%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

After applying the above formula, the monthly mortgage payment is $1,293.13