Question

The Hughes purchased a new condo for $ 1,000,000. at 8 % for 30 years. What is the monthly payment?

Answer 1

We know that

P = A/D
Where,
P = monthly payments,
A = Total amount =$1,000,000
$D=[(1+r/12) ^{12*t}-1]/[(r/12)*(1+r/12)^{12*t}]$

in this problem

t=30 years
r=8%----> 0.08

$D=[(1+0.08/12) ^{12*30}-1]/[(0.08/12)*(1+0.08/12)^{12*30}] =136.2835$

$P=1000000/136.2835-----\ \textgreater \ P= 7337.65$


the answer is
$7337.65