Question

1. Ms. Rowel would like to buy a house costing $190000. She is required to make a down payment equal

to 10% of the value of the house then borrow the balance from a bank that charges interest at an annual
rate of 4.2% compounded monthly. The bank loan has to be paid o§ with equal monthly payments,
(paid at the end of each month), in 30 years. Assume that she will get the loan at the beginning of a
month and start making monthly payments on the last day of each month until the loan is paid o§

Answer 1

the monthly payment would be 836.22

Explanation:

you would find the loan amount which is 190,000 -10% of 190,000 which is 190,000 - 19,000=171,000

then you put the numbers in on a calculator which im using a spreadsheets/ excel

you need to make sure that you divide 12 for the interest and multiply 12 to the 30 years to get the monthly value of them