Question

In: Finance

Suppose that you wish to buy a new home that will cost you $560,000. You must...

Suppose that you wish to buy a new home that will cost you $560,000. You must put $90,000 down, and will finance the rest at 3.6% APR, making monthly payments for 30 years at the end of each month. However, the loan is structured with a balloon payment of $100,000 in the last month. How much will your remaining monthly payments be?

Solutions

Expert Solution

Loan Amount = 560,000 - 90,000 = $470,000

Calculating Monthly Payment,

Using TVM Calculation,

PMT = [PV = 470,000, FV = -100,000, N = 360, I = 0.036/12]

PMT = $1,982.19

Monthly Payment = $1,982.19

jeff jeffy answered 2 years ago
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