Answer:
The correct answer is $1,067.38
Explanation:
According to the scenario, the given data are as follows:
House cost = $240,000
Down payment = 20% × $240,000 = $48,000
Amount of loan (p) = $240,000 - $48,000 = $192,000
Time period ( compounded monthly) (t) = 30 years × 12 = 360 months
Rate of interest = 5.31% = 0.0531
Rate of interest Monthly (r) = 0.0531 ÷ 12 = 0.004425
In this question, we use the PMT formula which is shown in the spreadsheet.
The formula is shown below:
= PMT(Rate;NPER;-PV;FV;type)
The present value come in negative
So, after solving this, the monthly payment is $1,067.38
