Calculate the monthly payment required to the nearest whole penny for a 30-year fixed-rate mortgage made...

Calculate the monthly payment required to the nearest whole penny for a 30-year fixed-rate mortgage made by the lender at 4.67% annual percentage rate (APR) if the home buyer borrowed $158,000.

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Expert Solution

We are given the following information:

Payment	PMT	To be calculated
Rate of interest	r	4.67%
Number of years	n	30.00
Monthly	frequency	12.00
Loan amount	PV	158000.00

We need to solve the following equation to arrive at the required PMT

So the monthly payment is $816.60

Below is the amortization schedule:

Opening balance = previous year's closing balance
Closing balance = Opening balance-Principal repayment
PMT is calculated as per the above formula
Interest = 0.0467 /12 x opening balance
Principal repayment = PMT - Interest

Below is the graph of principal and interest values

Rahul Sunny answered 1 year ago

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