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Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes...

Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes an APR of 4.71%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. What would be your monthly mortgage payment?

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Answer #1

Amount ofloan - $100,000 Term - 30 Years * 12 - 360 Months Interest rate-4.71% * 1/12-0.3925% Per month Monthly payment - Amount of loan * I/[1-(1+I -n -$100,000 * 0.3925%/ [ 1-( 1 +0.3925%)-360 ] -S392.5 /1 0.244086106] - S392.5/0.755913894 - $519.2390339 S519.24 (Rounded) Ans: Monthly mortgage payment - S519.24

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