You have purchased a house for $400,000 and taken a loan that is to be repaid...
You have purchased a house for $400,000 and taken a loan that is to be repaid in 180 equal monthly payments beginning next month (15-year loan). The interest rate charged is 0.3% monthly. What are your monthly payments? $1,831 $2,368 $2,879 $3,086
Homework Answers
| PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)] |
| C = Cash flow per period |
| i = interest rate |
| n = number of payments |
| 400000= Cash Flow*((1-(1+ 3.6/1200)^(-15*12))/(3.6/1200)) |
| Cash Flow = 2879 |
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You have purchased a house for $400,000 and taken a loan that is
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