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If you take out a loan for a $350,000 house with a year loan at 3.4% apr, what is the monthly cost?

User TaoBit
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1 Answer

7 votes

Final answer:

The monthly cost of the loan is approximately $1,551.59.

Step-by-step explanation:

To calculate the monthly cost of a loan for a $350,000 house with a 30-year loan at 3.4% APR, you can use the formula for the monthly payment of a fixed-rate mortgage:

P = (Pv * r) / (1 - (1 + r)^-n)

Where P is the monthly payment, Pv is the present value of the loan ($350,000), r is the monthly interest rate (3.4% / 12), and n is the total number of monthly payments (30 years * 12 months/year).

Plugging in the values, we get:

P = (350000 * (0.034/12)) / (1 - (1 + (0.034/12))^(-30*12))

P ≈ $1,551.59

Therefore, the monthly cost of the loan for a $350,000 house with a 30-year loan at 3.4% APR is approximately $1,551.59.

User Vikas Kunte
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