1. A house is priced at $200,000. A down payment of $40,000 has been made. Equal payment will be installed every mo...

Question

Question

Answer 1

Answer #1

There is a down payment of $40000 and so the amount as mortgage equals to $160000.

The effective rate of interest is 12%/12 = 1%.

There are 20*12 = 240 payments.

Monthly payment = 160,000(A/P, 1%, 240)

= 160000*0.011011

= $1761.7

excel command = PMT(1%,240,-160000,0)

= $1761.74

This is the required monthly payment

Answer 2

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