Question

You are planning to buy a house for $800,000. City bank offers a 30 year loan at 4.9 % apr ( Annual percentage interest rate) if you put 20 % down. Calculate your expected monthly payment.

Answer 1

3396.65

Explanation:

Let's start by cacluating the amount the bank is loaning us

800000*.8=640000

Let's now calculate the effective rate: .049/12= .004083333333

let x= payment

`640000=x(1-(1+.004083333333)^(-30*12))/(.004083333333)\\x=3396.651012`