Question

Joe Chin bought a house for $180,000. He made a 20% down payment. Joe secured a loan for the balance of the purchase price at 6.5% interest for 30 years. What will be the monthly payments on the loan? (do not use commas or dollar signs in your answer)

Answer 1

$910.18

Step-by-step explanation:

For computing the monthly payment we need to apply the PMT formula which is to be shown in the attachment

Given that,

Present value = $180,000 × (1 - 0.20) = $144,000

NPER = 30 years × 12 months = 360 months

RATE = 6.5% ÷ 12 months = 0.541666%

PMT = 1,000 × 4% ÷ 2 = $20

Future value = $0

The formula is shown below:

= NPER(RATE;NPER;-PV;FV;type)

The present value comes in negative

After applying the above formula, the monthly payment is $910.18