Answer:
The monthly payment will be of $11,485.37
Step-by-step explanation:
Compound interest:
The compound interest formula is given by:
Where A(t) is the amount of money after t years, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per year and t is the time in years for which the money is invested or borrowed.
A home is purchased for $ 794,000 with a 16% down payment.
So the value of the loan, that is, the amount subject to interest, will be given by:
How much will the interest accumulate to?
7.22% of interest means that
19 means means that
Monthly means that
So
Monthly payment:
2618664.5 divided in 19*12 payments. So
2618664.5/(19*12) = 11485.37
The monthly payment will be of $11,485.37