SOLUTION: good morning, can you please help me find the answer for this question? You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for t

Question 1131201: good morning, can you please help me find the answer for this question?
You want to buy a $199,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. Consider each question below and round each answer to the nearest cent.
a) How much is the loan amount going to be?
$
b) What will your monthly payments be if the interest rate is 6%?
$
c) What will your monthly payments be if the interest rate is 7%?
$
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
(r/n)=0.06/12=0.005
360 payments during life of loan.
PV=199000-19,900=179100 ANSWER a. P=PV*(r/n)/(1-(1+(r/n)^(-nt))
P=.005*179100/(1-(1.005^360)
round at end
=$1073.79
for 7%, (r/n)=0.0058333, everything else is the same
P=$1191.56

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