SOLUTION: A store was purchased for 725,000 and the buyer made a 10% down payment. The balance was financed with a 6.35% loan for 27 years. Find the monthly payment.

Algebra.Com
Question 1182343: A store was purchased for 725,000 and the buyer made a 10% down payment. The balance was financed with a 6.35% loan for 27 years. Find the monthly payment.
Found 2 solutions by mananth, MathTherapy:
Answer by mananth(16946)   (Show Source): You can put this solution on YOUR website!

Selling price = 725000
down payment = 10% of 725000 =72500
interest rate = 6.35% =0.0635
time = 27 years = 324 months (27 * 12)
First, we will compute the total interest for the loan
I = P * R * T
I = (725000 - 72500)(0.0635)(27)
I = 1118711.25
Next, compute the maturity value which is the principal plus the interest
M = P + I
M = 652500 + 1118711.25
M = 1770711.25
Now, compute the monthly payment by dividing the maturity value by the number of
months in the loan.
Monthly payment = M ÷ 324
Monthly payment = 1770711.25 ÷ 324
Monthly payment = 5465.16
The monthly payment would be $ 5465.16
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!

A store was purchased for 725,000 and the buyer made a 10% down payment. The balance was financed with a 6.35% loan for 27 years. Find the monthly payment.
No SURPRISE here! That person, AS USUAL, is WRONG! 

Correct monthly payment:  

RELATED QUESTIONS


 (Amortization) A store was purchased for P725,000 and the buyer made a 10% down payment.  (answered by greenestamps,ikleyn)

Your aunt purchased a home for $375,000. After a 20% down payment, the balance was... (answered by ewatrrr,Theo)

Michael Sanchez purchased a condominium for $73,000. He made a 20% down payment and... (answered by Theo)

What is the loan payment for a $128,000 home bought with a 20% down payment and the... (answered by jim_thompson5910)

Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and... (answered by Theo)

Denise purchased a new car selling for $26,000. Denise paid 30% as a down payment and... (answered by Studenttttt)

A small restaurant was purchased for $407,000 with no down payment and a 6% loan for 20... (answered by Alan3354)

.    Alice purchased a truck for a cash price of $24,900. She made a 15.5% down payment... (answered by josmiceli)

John has just purchased an apartment at a price of $5,000,000. He made a down-payment of 
 (answered by Theo)