Question
In: Finance
You are borrowing $200,000 to buy a house. The terms of the mortgage call for monthly...
You are borrowing $200,000 to buy a house. The terms of the
mortgage call for monthly payments for 30 years at 6% interest.
What is the amount of each monthly payment?
A. $1171.91
B. $1199.10
C. $1161.14
D. $1230.15
Solutions
Expert Solution
Ans B. $1199.10
| P = | Monthly Payments |
| PV = | Loan Amount |
| r = | rate of interest |
| n = | no of periods |
| P = | r (PV) |
| 1 - (1 + r )^-n | |
| P = | (6%/12)*200000 |
| 1 - (1 / (1 + 6%/12)^360)) | |
| P = | 1000 |
| 0.833958072 | |
| P = | 1199.10 |
jeff jeffy answered 3 years agoRelated Solutions
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