9514 1404 393
Answer:
$2300.01
Step-by-step explanation:
The down payment is 14% of $394,000, so is ...
0.14 × $394,000 = $55,160
This means the principal amount of the loan is ...
$394,000 -55,160 = $338,840
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The amount of the monthly loan payment is given by the amortization formula ...
A = P(r/12)/(1 -(1 +r/12)^(-12t))
where P is the principal amount, r is the annual interest rate, and t is the number of years. Filling in the values, we have ...
A = $338,840(0.072/12)/(1 -(1 +0.072/12)^(-12·30))
= $338,840(0.006)/(1 -(1.006^-360)) = $2300.01
The monthly payment is $2300.01.
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<em>Additional comment</em>
Such calculations are commonly done using a spreadsheet, financial calculator, or app. If you're doing a number of financial calculations, it can be a good idea to obtain and learn to use an appropriate tool.
