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Use the PMT function in Excel to compute the monthly payment on a home each month if you borrowed $390,000 at an annual interest rate of 6.89% over 30 years, where the interest is compounded monthly.​

User Johanisma
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The monthly payment on a home, if one borrowed $390,000 at annual interest rate of 6.89% over 30 years, is $2,565.93.

How the monthly payment is computed:

Using the PMT function or an online finance calculator will compute the monthly payment as follows:

N (# of periods) = 360 months (30 years x 12)

I/Y (Interest per year) = 6.89%

PV (Present Value) = $390,000

FV (Future Value) = $0

Results:

PMT (Monthly Payment) = $2,565.93

Sum of all periodic payments = $923,734.80

Total Interest = $533,734.80

Thus, the monthly payment for $390,000 mortgage over 30 years is $2,565.93.

User Gangsta
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