Question

he Hughes purchased a new condo for $ 1,000,000. at 8 % for 30 years. What is the monthly payment? My answer is $7337.65, will someone assist in checking and or correcting? Thank you

Answer 1

P = A/D

Where, P = monthly payments, A = Total amount =$1,000,000

$D = \frac{ (1+ \frac{r}{12}) ^{12t} -1}{ \frac{r}{12} (1+ \frac{r}{12} )^{12t} }$

t= 30 years
r= 8% = 0.08
Therefore,
$D= \frac{ (1+ \frac{0.08}{12}) ^{12*30} -1}{ \frac{0.08}{12} (1+ \frac{0.08}{12}) ^{12*30} }$ = 136.28

Then,

P= 1000000/136.28 = $7,337.65