Question
In: Finance
If you borrowed $200,000 - what would your monthly loan payment be? Rate: 2.94 Time: 30...
If you borrowed $200,000 - what would your monthly loan payment be?
Rate: 2.94
Time: 30 years
If you borrowed $200,000 - what would your monthly loan payment be?
Rate: 7.85
Time: 30 years
Please show work / calculator button
Solutions
Expert Solution
Loan amount = Present value of future monthly payments = monthly payment * [1-(1+i)^-n]/i
i = interest rate per period
n = numbber of periods
a)
monthly payment * [1-(1+0.0294/12)^-360]/(0.0294/12) = 200000
=>
monthly payment = 836.75
b)
monthly payment * [1-(1+0.0785/12)^-360]/(0.0785/12) = 200000
=>
monthly payment = 1446.67
jeff jeffy answered 2 years agoRelated Solutions
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