Question

Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You will finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

Answer 1

$819.98

Step-by-step explanation:

After making downpayment, the remaining amount is $145,000 - 15000 = $130,000

Using financial calculator:

PV = 130,000

n = 30 years = 360 months

i/r = 6.5%/year = 0.54% / month

FV = 0

PMT = ? (Monthly payment = ?)

--> Monthly payment = $819.98