Question

Amanda Chin purchased a home for $296,000; she put 20% down with a mortgage rate of 6% for 30 years. What is Amanda's monthly payment?

Answer 1

`\bf \qquad \qquad \textit{Amortized Loan Value} \\\\ pymt=P\left[ \cfrac{(r)/(n)}{1-\left( 1+ (r)/(n)\right)^(-nt)} \right]`


`\bf \begin{cases} P= \begin{array}{llll} \textit{original amount loaned}\\ \textit{there's a downpayment}\\ \textit{of 20\%, or 59,200}\\ \end{array}\to & \begin{array}{llll} 296,000\\ -59,200\\ \underline{236,800} \end{array}\\ pymt=\textit{periodic payments}\\ r=rate\to 6\%\to (6)/(100)\to &0.06\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{she's making monthly payments} \end{array}\to &12\\ t=years\to &30 \end{cases}`

notice, the amount that'd be compounded of the loan, is just the 80%, because she put a downpayment of 20%, so, that doesn't get any interest, thus P = 236,800