Based on the amount of the loan, the interest rate, and the loan period, the monthly payment would be <u>$3,302.</u>
<h3>Loan Amount</h3>
<em>= Price of house - Amount in cash </em>
= 500,000 - ( 500,000 x 10%)
= $450,000
<h3>Periodic interest </h3>
= 8% / 12 months
= 8/12%
<h3>Number of periods </h3>
= 30 x 12 months
= 360 months
<h3>Monthly Payment </h3>
This is an annuity as the payment is constant. The loan value will be the present value of the annuity.
<em>Present value of annuity = Annuity x ( 1 - ( 1 + rate) ^ - number of periods) / rate </em>
450,000 = Annuity x ( 1 - ( 1 + 8/12%) ⁻³⁶⁰) / 8/12%
Annuity = 450,000 / 136.283494
= $3,302
In conclusion, monthly payment would be $3,302.
Find out more on loan amounts at brainly.com/question/24576997.
