Question

You want to buy a $244,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 5.5% interest for the rest.

a) How much is the loan amount going to be?



b) What will your monthly payments be?

Answer 1

Hi there

a)244,000−244,000×0.20=195,200

b) pmt=pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
Pmt=195,200÷((1−(1+0.055÷12)^(−12×30))÷(0.055÷12))=1,108.32

Hope it helps