Question

What is the required monthly payment on a $350,000 mortgage? Assume a standard mortgage (360 months) with monthly payments. Use a nominal rate of 6.90%.

Answer 1

EMI = $2,305

Step-by-step explanation:

We can calculate Monthly payment on a $350,000 mortgage by using following formula of equated monthly installments. You just need to collect the data to input in the formula for further calculation.

Data

Principal amount = $350,000

Rate = 6.90% = 6.90%/12months = 0.00575

number pf periods = 360 months

Formula

EMI = [
`([P x R x (1+R)^(n) )/((1+R)^(n-1) )`]

P = Principal amount

R = Rate

n = number pf periods

Solution

EMI =
`([350,000 x0.00575 x ((1+0.00575)^(360-1)) ])/(1+0.00575)^(360-1))`

EMI = $2,305