You decide to borrow $250000 to build a new home. The bankcharges an interest rate...

You decide to borrow $250000 to build a new home. The bank charges an interest rate of 6% compounded monthly. If you pay back the loan over 30 years, what will your monthly payments be (rounded to the nearest dollar)?

Solutions

Expert Solution

EMI =

r is the rate of interest for a compounding period i.e. 0.06%/ 12 = 0.005

n is the no of compoundind period i.e. 30 years * 12 = 360 months

= $1498.88

jeff jeffy answered 2 years ago

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