A new set of kitchen equipment has a cost of $75,000 including installation. You are able...
A new set of kitchen equipment has a cost of $75,000 including installation. You are able to negotiate a monthly mortgage with a bank with no down payment at 12%, for two and a half years. What is the monthly mortgage?
Homework Answers
monthly payment formula = P*r*(1+r)^n / [(1+r)^-1]
here,
P =75,000
r = 12% per annum =>12% *1/12 =>1% per month
=>0.01.
n = 2.5 years * 12 months
=> 30 months.
monthly mortgage = 75,000*0.01*(1.01)^30 / [(1.01)^30-1]
=>750*1.34784892 / 0.34784892
=>$2,906.11.
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