You purchase a $750,000 condo in Hoboken with a $550,000 permanent mortgage loan for 30 years....
You purchase a $750,000 condo in Hoboken with a $550,000 permanent mortgage loan for 30 years. The annual interest rate on the loan is 4%. Approximately how much are your monthly payments?
a. $2,387
b. $2,625
c. $3,580
d. $19,295
e. $31,807
Homework Answers
Rate per month =4%/12
Number of Periods =30*12 =360
PV of loan =550000
Monthly Payment =PV/((1-(1+r)^-n)/r)
=550000/((1-(1+4%/12)^-360)/(4%/12)) =2625
Option b is correct option
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