Question

You want to purchase a new condominium that costs $325,000. Your plan is to pay 20 percent down in cash and finance the balance over 15 years at 4.1 percent. What will be your monthly mortgage payment including principal and interest?

Answer 1

The monthly mortgage payment including principal and interest is $1,936.25

Explanation:

PV = (1 - 0.20) × $325,000 = $260,000‬

r = 0.041 / 12

t = 15 * 12 = 180

$C = \frac{PV}{\frac{1- [\frac{1}{(1+r)^{t} } ] }{r}}$

C = $260,000‬ ÷ [1 - {1 / (1 + 0.041 / 12)∧180} / (0.041 / 12)]

C =  $1,936.25

The monthly mortgage payment including principal and interest is $1,936.25