Question

A investor obtained a loan of $600,000 to buy a car wash business. The monthly mortgage payment was based on 30 years at 5.5%. Find the monthly mortgage payment.

Answer 1

Answer:

The monthly mortgage payment is $ 8306.58

Step-by-step explanation:

Given as :

The loan taken as $ 600,000

The rate of interest = 5.5 %

The time period = 30 Years

So, from compounded method

Amount = principal × $(1 +\frac{Rate}{100})^{Time}$

or, Amount = $ 600,000 × $(1 +\frac{5.5}{100})^{30}$

Or, Amount =  $ 600,000 × $(1.055)^{30}$

∴   Amount = $ 2990370.77

Now for The monthly mortgage payment

∵ Time period is 30 years

So , 30 years = 12 × 30 = 360 months

∴ Amount payment in monthly =$ $\frac{2990370.77}{360}$

Or, Amount payment in monthly =$ 8306.58

Hence The monthly mortgage payment is $ 8306.58   Answer