Joe Chin bought a house for $180,000. He made a 20% down payment. Joe secured a loan for the balance of the purchase price at 6.
5% interest for 30 years. What will be the monthly payments on the loan? (do not use commas or dollar signs in your answer)
1 answer:
Answer:
$910.18
Explanation:
For computing the monthly payment we need to apply the PMT formula which is to be shown in the attachment
Given that,
Present value = $180,000 × (1 - 0.20) = $144,000
NPER = 30 years × 12 months = 360 months
RATE = 6.5% ÷ 12 months = 0.541666%
PMT = 1,000 × 4% ÷ 2 = $20
Future value = $0
The formula is shown below:
= NPER(RATE;NPER;-PV;FV;type)
The present value comes in negative
After applying the above formula, the monthly payment is $910.18
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