Answer: the monthly payment is $1530.1
Step-by-step explanation:
The cost of the house is $319,000.
The down payment made is 20%. This means that the amount paid as down payment is
20/100 × 319000 = 63800
The balance to be paid would be
319000 - 63800 = $255200
We would apply the periodic interest rate formula which is expressed as
P = a/{[(1+r)^n]-1}/[r(1+r)^n]
Where
P represents the monthly payments.
a represents the amount of the loan
r represents the annual rate.
n represents number of monthly payments. Therefore
a = $255200
r = 0.06/12 = 0.005
n = 12 × 30 = 360
Therefore,
P = 255200/{6.0226 -1}/[0.005(6.0226)]
P = 255200/166.79
P = 1530.1
