Suppose you want to buy a house that costs $150,000. You are required to put 10%...

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Answer 1

Answer #1

Amount to borrow = 0.90 $\times$ $ 150,000

Amount to borrow = $ 135,000

The monthly payment is found using the following equation

Present value of the mortgage PMT = 1-(1 + interest rate) -nt interest rate

PMT= $135,000 -12X30 0.043 1 + 12 0.043 12

Monthly payment = $ 668.1

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Answer 2

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