Question

Ms. Smith borrowed $220,000 from the bank to purchase a house. The 30- year loan has an annual interest rate of 5.5%. Calculate the monthly payment

Answer 1

So first off, $220,000 divided by 30 is 7333.1/3cont. so we take 7333.1/3cont. times 1.055 (bc it’s increasing and we got to move the five two places) and we get 7736.2/3cont. that is what ms.smith has to pay each year for 30 years. so divide that number by 12 (months) and we get 644.722222222cont. so there u go. that’s what she pays a month $644.72