Question

Suppose you want to buy a $151,000 home. You found a bank that offers a 30-year loan at 4.7% APR. What will be your monthly payment? (Round to the nearest cent.)

Answer 1

the monthly payment is $783

Explanation:

The computation of the monthly payment is shown below:

Given that

PV = $151,000

NPER = 30 × 12 = 360

RATE = 4.7% ÷ 12 = 0.39166

FV = $0

The formula is shown below

= PMT(RATE;NPER;-PV;FV;TYPE)

AFter applying the above formula, the monthly payment is $783.14