Question

In: Statistics and Probability

Find the monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a...

Find the monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.

Expert Solution

Answer:-

Given that:-

Find the monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.?

The monthly payment needed to amortize principal and interest for each fixed-rate mortgage for a $220,000 at 4.5% interest for 30 years.

(P) Loan payment

* Number of periodic payments (n) = 360 [30 years times 12 montly payments per year]

* periodic interest rate (i)

= 0.00375[4.5% annually expressed as 0.045,divided by 12 monthly payments per year]

* Discount factor D

Hence Loan payment per month

(monthly payment)

orchestra answered 2 years ago

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