Question

Suppose you want to buy a $158,000 home. You found a bank that offers a 30-year loan at 4.9%

APR.
What will be your monthly payment? (Round to the nearest cent.)

Answer 1

I believe monthly payment would be $645.17

Explanation:

Interest = Principal x rate x time

Interest = 158000(.049)(30)

Interest = $232,260

Principal + Interest = 390,260

390,260 divided by 360 months (30 yrs at 12 months per yr) = 645.17

Answer 2

Explanation:

300000 will be your monthly payment.