Question

You plan to purchase a new home in the amount of $165,500. You are required to make a 20% down payment in cash. The bank agrees to give you a 30-year, fixed interest rate of 4.6% for the amount of the mortgage loan.

Identify the amount of the monthly mortgage payment.

Round your answer to the nearest cent (penny). Do not type a dollar sign.

Answer 1

The monthly mortgage payment for a 165,500 home with a 20% down payment and a 30-year mortgage at a 4.6% interest rate is approximately 680.37, rounded to the nearest cent.

Step-by-step explanation:

The subject of this question is the calculation of a monthly mortgage payment. To calculate the monthly mortgage payment for a home purchase of $165,500 with a 20% down payment and a 30-year fixed interest rate of 4.6%, first, we find the amount of the loan after the down payment. A 20% down payment on $165,500 is $33,100 (20% of $165,500), which means the loan amount will be $165,500 - $33,100 = $132,400. Using a mortgage calculator or the appropriate financial formulas, we calculate the monthly payment, which typically includes principal and interest.

Using a standard mortgage formula or calculator, the monthly payment on a $132,400 loan at a 4.6% interest rate for 30 years is approximately $680.37. This answer is rounded to the nearest cent without the dollar sign as requested.

Answer 2

Step-by-step explanation:

Calculate the amount of the down payment: $165,500 * 0.20 = $33,100

Calculate the amount of the mortgage loan: $165,500 - $33,100 = $132,400

Calculate the monthly interest rate: 4.6% / 12 = 0.038333333

Calculate the number of monthly payments: 30 years * 12 months/year = 360 months

Calculate the monthly mortgage payment: $132,400 * 0.038333333 * (1 + 0.038333333)^(-360) = $678.74

Therefore, the monthly mortgage payment is $678.74.