Question

Sara buys a house for $290,000. She makes a 20% down payment and finances the balance with a 30-year fixed loan at 4.2% interest compounded monthly. Sara's monthly payment is:

Answer 1

monthly payment=$322.52

Explanation:

cost of house=$290,000

down payment= 20%

interest monthly = 4.2%

interest rate compounded monthly so (i)=4.2/12=0.35%

months=
`30* 12`=360 months

down payment =
`0.2* 290000`

=$58000

amount to be paid(P)=$232,000

`P=R((1+r)^n-1)/(i)\\232000=R((1+0.0035)^(360)-1)/(0.0035)\\232000=R* 719.33`

R=$322.52

sara's monthly payment will be $322.52