Question

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01

Answer 1

C

Explanation:

Edge 2020

Answer 2

309,900.00
-61,980.00 20% down
247,920.00
rate = (6 / 1,200) = .005
months = 360
(See attached for loan payment formula)
Monthly Payment = [.005 + .005 / ((1.005^360)-1)] * 247,920.00
Monthly Payment = [.005 + .005 / (( 6.02257521226299)-1)] * 247,920.00
Monthly Payment = [.005 + (.005 / 5.02257521226299)] * 247,920.00
Monthly Payment = [.005 + 0.0009955053 ] * 247,920.00
Monthly Payment = [ 0.0059955053 ] * 247,920.00
Monthly Payment = 1,486.41

answer is "c"