You decided to purchase a new home and need a $357,211 mortgage. You take out a...

You decided to purchase a new home and need a $357,211 mortgage. You take out a loan from the bank that has an interest rate of 1.4%. What is the yearly payment to the bank to pay off the loan in 20 years?

Expert Solution

We are given:

Loan amount= $357,211

Interest rate= 1.4%

Years = 20

To calculate the yearly payment of the loan, we will use BA 2 plus financial calculator:

PV(loan amount) = $357,211

I/Y(interest rate) = 1.4%

N(Years) =20

CMPT PMT

Yearly payment = $20,601.4918

jeff jeffy answered 2 years ago

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You decided to purchase a new home and need a $357,211 mortgage. You take out a...

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