Question

PLEASE HELP this is my last problem not sure how to work it out.

You purchase a home for $250,000 with a 20% down payment. If you are approved for a 4.91% annual interest rate for a 30-year mortgage, calculate your monthly payment (P+I).

Answer 1

The answer is $1,328.

Answer 2

Answer: $1,062.67

Price of the home = $250,000

20% downpayment = 20% x 250,000 = 0.2 x 250,000 = $50,000

Loan (Amount less downpayment) = $250 000 - $50,000 = $200,000


`\text {Monthly Repayment Period =} P(r(1+r)^n)/((1+r)^n-1)`

Monthly payment = $1,062.67
Answer : $1,062.67 monthly