Question

Use the figure below. Jonathan and Marty Boman purchased a home for $113,400. As first-time homeowners, the bank only requires a 5 percent down payment. The rest is financed at 6.5% for 30 years. What is the amount of their monthly payment?

Answer 1

the amount of monthly payment $680.85

Explanation:

in this question the amount of monthly payment is required to be paid by Jonathan and Marty Boman who have purchased a home for $113,400.

As they have given 5% down payment

so,

5% of 113400 =( 5 / 100 ) * 113400

= 5670

the amount left to be paid = 113400 - 5670

= 107730

from the table we get that if interest rate is 6.5 % and length of loan is 30 years then

No of thousands in $ 107730 = 107730 /1000

= $107.730

the amount of monthly payment = 107.730 * 6.32

= $680.85