Complete question:
The condominium at the beach that you want to buy costs $249,500. You plan to make a cash down payment of 20 percent and finance the balance over 10 years at 6.75 percent. What will be the amount of your monthly mortgage payment?
a. $2,291.89
b. $2,809.10
c. $3,287.46
d. $3,412.67
e. $4,145.68
Answer:
$2,291.89 will be the amount of your monthly mortgage payment
Solution:
A mortgage interest is considered the principal balance.
Every month you spend a portion of your monthly mortgage payment in order to pay off another principal or mortgages debt and a portion of the monthly payments will be charged into interest on the loan.
249500 x 20%= 49900
Amount financed = 249500-49900 = 199,600
Enter 10×12 6.75/12 199,600 0
N I/Y PV PMT FV
-2,291.89