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OLEGan [10]
3 years ago
6

Brian is going to buy his first home for $220,000. He has to put $22,000 down. He needs to spread the payments over 180 months t

o get a 3.5% fixed annual interest. What is the best estimate of the monthly payment?
Mathematics
1 answer:
MAXImum [283]3 years ago
5 0

Answer:

<u>Use the forumula</u>

<u></u>

Payment = P(r/n)(1+r/n)nt/((1+r/n)nt-1)

For this case nt = 180, r/n = 0.035/12 and P = 220,000 - 22000 = 198000

(1+r/n)180 = 1.00292180 = 1.6892

Payment = 198000(0.00292)(1.6892)/0.6892 ≈ $1415.46

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