In: Finance
You just purchased a vacant lot for $60,000. You financed that amount over 180 months. What would your monthly payment be if your interest rate was 3.75% compounded monthly?
Information provided:
Present value= $60,000
Time= 180 months
Interest rate= 3.75%/12= 0.3125% per month
The monthly payment is calculated by entering the below in a financial calculator:
PV= -60,000
N= 180
I/Y= 0.3125
Press the CPT key and PMT to compute the monthly payment.
The value obtained is 436.33.
Therefore, the monthly payment is $436.33.