Question

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01 A. Not to sure, I'm not a math expert. I could be wrong.

Answer 1

Answer:

$1486.41.

Step-by-step explanation:

Purchase price = $309,900

Down payment percent = 20 %

Remaining amount Percentage  = 100-20 = 80%

Mortgage amount = $309900 \times 0.80$

                              =$247920$

Formula of monthly payment : $P =\frac{\frac{rM}{1 -(1 +\frac{r}{n})^-{nt}}}{n}$

where P = the payment,

r = the annual rate =6% = 0.06

M = the mortgage amount = $247920

t = the number of years=30

n = the number of payments per year= 12

Substitute the values.

$P =\frac{\frac{0.06 \times 247920}{1 -(1 +\frac{0.06}{12})^-{12\times 30}}}{12}$

$P=1486.40566196$

Hence the monthly payment is $1486.41.

Thus Option C is correct.