Ironwood Bank is offering a 30-year mortgage with an APR of 6.25 % based on monthly compounding. If you plan to borrow $ 163 co
mma 000, what will be your monthly payment?
1 answer:
Answer:
$1,003.62
Explanation:
We use the PMT formula that is shown in the attachment below:
Provided that
Present value = $163,000
Future value = $0
Rate of interest = 6.25% ÷ 12 = 0.5208333%
NPER = 12 months × 30 = 360 months
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 $1,003.62
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