Question

You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 7.25 percent. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage.

Answer 1

$545.74

Step-by-step explanation:

The actual mortgage is the purchase price minus the down payment, based on the mortgage amount, the monthly payment can be determined using a financial calculator as shown below:

N=360(number of monthly payments in 30 years=30*12=360)

I/Y=7.25/12(monthly interest rate without the "%" sign)

PV=-80000($100,000-20%*$100,000=$80000)

FV=0(after all required payments , the balance of the mortgage balance would be zero)

CPT

PMT=$545.74