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Ella purchases a new house for $400,000. She put 20% down and will finance the rest...

Ella purchases a new house for $400,000. She put 20% down and will finance the rest over 30 years at 4.5%. What is her monthly payment? Group of answer choices $1,721.35. $1,621.4 $405.34 $1,635.98.

Solutions

Expert Solution

Loan Amount = (1 - 0.20)(400,000) = $320,000

Calculating Monthly Payment,

Using TVM Calcuation,

PMT = [PV = 320,000, FV = 0, N = 360, I = 0.045/12]

PMT = $1,621.4

jeff jeffy answered 2 years ago
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