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Natasha2012 [34]
3 years ago
15

2. Kerry has a $1,973-per-month mortgage payment. He decides to refinance his $204,000 balance at 5% over 20 years. What's his n

ew monthly payment?
Mathematics
1 answer:
klemol [59]3 years ago
5 0

The formula for the amount of a monthly payment A on principal amount P at interest rate i loaned for t years is given by

... A = P(i/12)/(1 -(1 +i/12)^(-12t))

Filling in the given values, this is

... A = $204000(.05/12)/(1 -(1 +.05/12)^(-12·20)) ≈ $1346.31

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I think you are referring to this:
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