You found your dream house. It will cost you $300000 and you will put down $30000 as a down payment. For the rest you get a 30-y

Question

3 years ago

11

ear 4.0% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)?

1 answer:

Andrews [41] · Answer 1 · 2022-02-22T23:50:53+03:00

Answer:

$1,282.80

Explanation:

The PMT formula is used for this question. The attachment is shown below:

The NPER shows the time period

Given that,

Present value = $300,000 - $30000 = $270,000

Future value = $0

Rate of interest = 4% ÷ 12 months = 0.33%

NPER = 30 years × 12 months = 360 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the answer is $1,282.80