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

Question

3 years ago

11

over 15 years at 4.1 percent. What will be your monthly mortgage payment including principal and interest?

1 answer:

alekssr [168] · Answer 1 · 2022-01-19T19:45:45+03:00

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