You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity...

You borrowed from the bank $300,000 with an annual interest rate of 6% and a maturity of 30 years. Determine the monthly mortgage payment.

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Expert Solution

Monthly mortgage payment	Loan amount/(1-(1+r)^-n)/r
r is interest rate and n is number of payment
Monthly interest rate r	6%/12
Monthly interest rate r	0.50%

No of payment n	30*12
No of payment n	360

Monthly mortgage payment	$300,000/(1-(1.005^-360)/0.005)
Monthly mortgage payment	300000/166.7916
Monthly mortgage payment	$1,798.65

Thus, monthly mortgage payment is $1,798.65

jeff jeffy answered 2 years ago

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