Brian Burkhardt is planning to purchase a home and expects toborrow $241,161 to mortgage the...

Brian Burkhardt is planning to purchase a home and expects to borrow $241,161 to mortgage the purchase, Given a 30-year mortgage has a rate of 0.0367, the monthly payment Brian can expect to pay is:

Solutions

Expert Solution

Present Value = $241,161

Total number of years = 30

rate of interest = 3.67%

Let X be the monthly payment.

Monthly rate of interest = (1 + i)^(1/12) -1

where power is 1/12 because the payments are monthly.

So,

(1 + i)^(1/12) -1

=(1 + 0.0367)^(1/12) -1

=0.0030080

Monthly rate of interest = 0.3008%

Therefore, X = $1097.7286

jeff jeffy answered 2 years ago

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