Answer:
The monthly payment amount would be $821.69
Explanation:
Hi, since you have already paid $15,000 (down payment), the amount of money to be financed is $130,000 ($145,000 - $15,000). Knowing that, we need to solve the following equation for "A".
Where:
Present Value = money borrowed (in our case, $130,000)
r = effective interest rate (in our case, 6.5%/12= 0.5417% or 0.005417)
n = number of periodic payments (in our case, 30*12=360 monthly payments)
Everything should look like this.
Therefore:
So, the monthly payments would be equal to $821.69.
Best of luck.
