Question

A supermarket building was purchased for $600,000. The down payment was 15%. The balance was financed at 7.86% for 28 years. Find the monthly payment.

Answer 1

The monthly payment is:

= $3,759.76.

Step-by-step explanation:

a) Data and Calculations:

Cost of a Supermarket Building = $600,000

Downpayment (15%) = 90,000

Principal loan = $510,000

Interest rate for financing loan = 7.86%

Period of loan = 28 years or 336 months

Monthly payment from an online financial calculator is:

N (# of periods) 336

I/Y (Interest per year) 7.86

PV (Present Value) 510000

FV (Future Value) 0

Results

PMT = $3,759.76

Sum of all periodic payments $1,263,278.64

Total Interest $753,278.64