Question

Suppose you are buying your first condo for $112,885, and you will make a 21% down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 5.8% nominal interest rate, with the first payment due in one month. What will your monthly payments be?

if you could tell me what you input on a financial calculator that'd be great!

Answer 1

Information provided:

Price of the condo= $112,885

Down payment= 0.21*$112,885= $23,705.85

Mortgage= $112,885 - $23,705.85 = $89,179.15

Time= 30 years*12= 360 months

Interest rate= 5.8%/12= 0.4833% per month

The monthly payment is computed by entering the below in a financial calculator:

PV= -89,179.15

N= 30

I/Y= 0.4833

Press the CPT key and PMT to compute the monthly payment.

The value obtained is 523.26.

Therefore, the amount of monthly payment is $523.26.

In case of any query, kindly comment on the solution.