The monthly payment for purchasing the home will be $457.85.
<h3>What is a monthly payment?</h3>The term loan refers to a sort of credit vehicle in which a sum of money is lent to another party in exchange for the value or principal amount being repaid in the future.
Then the formula of monthly payment (MP) will be
In order to purchase a home, a family borrows $110,000 at 2.9% for 30 years.
We have
P = $110,000
r = 0.029 / 12 = 0.0024
n = 30 × 12 = 360
Then the monthly payment will be
On further solving, we have
MP = 110000 × 0.0024 × 1.723
MP = $ 457.85
More about the monthly payment link is given below.
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