Question
In: Finance
I have bought a house for $300,000. I made a 20% down paymentand borrowed the...
I have bought a house for $300,000. I made a 20% down payment and borrowed the rest at 4.2% APR with monthly compounding. It is a 30-year amortized loan. What will be my payments each month at t=1,2,…,360?
*Please post any calculator use and formulas*
Solutions
Expert Solution
Information provided:
Cost of the house= $300,000
Down payment= 20%*$300,000= $60,000
Mortgage= Present value= $300,000 - $60,000 = $240,000
Time= 30 years*12= 360 months
Interest rate= 4.2%/12 = 0.35% per month
The monthly payment is calculated by entering the below in a financial calculator:
PV= -240,000
N= 360
I/Y= 0.35
Press the CPT key and PMT to compute the amount of monthly payment.
The value obtained is 1,173.64.
Therefore, the amount of monthly payment is $1,173.64.
jeff jeffy answered 2 years agoRelated Solutions
I have bought a house for $300,000. I made a 20% down paymentand borrowed the...
I have bought a house for $300,000. I made a 20% down payment
and borrowed the rest at 4.2% APR with monthly compounding. It is a
30-year amortized loan. Prepare the first two rows of the
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calculator*
I have bought a house for $300,000. I made a 20% down payment and borrowed the...
I have bought a house for $300,000. I made a 20% down payment
and borrowed the rest at 4.2% APR with monthly compounding. It is a
30-year amortized loan. Prepare the first two rows of the
amortization table (beginning balance, PMT, interest paid,
principal paid, ending balance).
I have bought a house for $300,000. I made a 20% down payment and borrowed the...
I have bought a house for $300,000. I made a 20% down payment
and borrowed the rest at 4.2% APR with monthly compounding. It is a
30-year amortized loan. What will be my payments each month at
t=1,2,…,360?
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1.Bob and his wife are buying a $300,000 house. They put 20%
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Round your answer to the nearest penny. For example,
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