Question

You want to purchase a new condominium that costs $287,500. You plan is to pay 25 percent down in cash and finance the balance over 25 years at 3.75 percent. What will be your monthly mortgage payment including principal and interest?A) $1,568.07B) $1,333.33C) $1,708.16D) $1,221.43E) $1,406.11

Answer 1

Answer:

A. $1,568.07

Explanation:

Amount financed = (1 - .25) ×$287,500 = $215,625

PV = $215,625 = C × (1 - {1 / [1 + (.0375 / 12)]180}) / (.0375 / 12) C = $1,568.07