Question

You want to buy a house that costs $285,000. You will make a down payment equal to 20 percent of the price of the house and finance the remainder with a loan that has an APR of 5.49 percent compounded monthly. If the loan is for 30 years, what are your monthly mortgage payments

Answer 1

$1,293.13

Step-by-step explanation:

For computing the monthly mortgage payments we use the PMT formula i.e to be shown in the attachments below:

Given that,

Present value = $285,000 - $285,000 × 20% = $228,000

Future value = $0

Rate of interest = 5.49% ÷ 12 months = 0.46%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

After applying the above formula, the monthly mortgage payment is $1,293.13