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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 2 years ago
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