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What will be the monthly payment on a $75,000 30-year home mortgage at 1% interest per...

What will be the monthly payment on a $75,000 30-year home mortgage at 1% interest per month?

Solutions

Expert Solution

Interest, i = 1%

Period, n = 30×12 = 360

So EMI = PV ie 75,000/Discount factor @ 1% for n= 360

Thus EMI = 75,000/97.2132 (Using excel for PV or table)

So Monthly payment = $ 771.5

Method 2: using excel ie, =PMT(1%,360,75000) we get monthly payment = $ 771.46

ekkarill92 answered 3 years ago
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