You want to buy a house and will need to borrow $245,000. The interest rate on...

You want to buy a house and will need to borrow $245,000. The interest rate on your loan is 5.77 percent compounded monthly and the loan is for 30 years. What are your monthly mortgage payments?

Expert Solution

	Monthly payment	[P×r×(1+r)^n]÷[(1+r)^n-1]

	Here,

1	Interest rate per annum	5.77%
2	Number of years	30
3	Number of compoundings per per annum	12
1÷3	Interest rate per period ( r)	0.48%
2×3	Number of periods (n)	360
	Loan amount (P)	$ 245,000

	Monthly payment	$ 1,432.87
		(245000×0.48%×(1+0.48%)^360)÷((1+0.48%)^360-1)

jeff jeffy answered 2 years ago

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