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Rudiy27
3 years ago
10

Alicia and Nick are buying a $725,000 home. They have been approved for a 5.25% APR, 30-year mortgage. They made a 20% down paym

ent. What will be their monthly payment over 30 years? Google “mortgage calculator” and find the monthly payment using that tool.
Business
1 answer:
UkoKoshka [18]3 years ago
6 0

Answer:

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

Monthly payments =$ 3,202.78

Explanation:

Given

Home Cost=725,000

downpayment= 20% of 725,000

An=725,000 - 0.2 *725,000

An= 580,000

t=30 yrs

n=12 (monthly)

j=5.25% (interest rate)

--> i=j/m

i=0.0525/12

-->n=m*t

n=12*30

n=360

FInd monthly pmts ( R) =?

R=An*i : [1-(1+i)^-n]

R=580,000*0.0525/12 : [1-(1+0.0525/12)^-360]

R=3,202.78

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