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
ear 4.0% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)?
1 answer:
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
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Answer:
5.52%
Explanation:
For computing the coupon rate we first have to determine the PMT by applying the PMT formula
Given that,
Present value = $954
Future value = $1,000
Rate of interest = 6.2%
NPER = 9 years
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $55.18
Now the coupon rate is
= $55.18 ÷ $1,000
= 5.52%
