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 = ( (1+ (r)/(12)) ^(12t) -1)/( (r)/(12) (1+ (r)/(12) )^(12t) )`

t= 30 years
r= 8% = 0.08
Therefore,

`D= ( (1+ (0.08)/(12)) ^(12*30) -1)/( (0.08)/(12) (1+ (0.08)/(12)) ^(12*30) )` = 136.28

Then,

P= 1000000/136.28 = $7,337.65