You plan to buy a $127,242 house. You have $30,313 to use as the down payment....

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You plan to buy a $127,242 house. You have $30,313 to use as the down payment. The bank offers to loan you the remainder at 1

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Answer 1

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Monthly effective interest rate =nominal interest rate /number of compounding

=18/12

=1.5%=i=r

n=months =12*20=240

PV=reminder =127242-30313=96929

A=monthly payment

A=PV*(A|P,i,n)

A=96929*(A|P,1.5%,240)

A=96929*0.015433115233631627=1495.91643

the monthly payment is $1495.92

=======

Or by formula

PV = 4/4-(1+). r 1- (1+0.015) 96929 = A* 0.015 96929 * 0.015 A=1-60015240 A=1495.91643

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Answer 2

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You plan to buy a $127,242 house. You have $30,313 to use as the down payment....

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You plan to buy a $127,242 house. You have $30,313 to use as the down payment....

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