Answer:
The monthly payments will be approximately $4722.16
Explanation:
loan amount: $500000
annual interest on loan: 8%
loan duration: 30 years
To get the annual interest to be paid on loan will be
8% of $500000 = 0.08 * $500000 = $40000
therefore the total interest to be paid in 30 years will be
$40000 * 30 years = $1200000
The total amount of loan to be paid in 30 years will then be
loan amount + total interest = $500000 + $1200000 = $1700000
making monthly payment this total amount to be paid over 30 years will be
Yearly payment
$1700000 ÷ 30 years ≈ $56666
Monthly payment
$56666 ÷ 12 months in a year ≈ $4722.16
