SOLUTION: Find the monthly payment for the loan. (Round your answer to the nearest cent.) A $116,000 home bought with a 20% down payment and the balance financed for 30 years at 8.5% $

Question 849359: Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $116,000 home bought with a 20% down payment and the balance financed for 30 years at 8.5%
$
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
home costs 116,000
20% down equals 23,200
subtract 23,200 from 116,000 to get a mortgage of 92,800.
mortgage of 92,800 for 20 years compounded monthly would require a monthly payment of $713.55 per month rounded to the nearest penny.

i used a financial calculator to find the result.
you can, however, reproduce the same result by formula.

the formula that would be used can be found at the following link:

http://www.algebra.com/algebra/homework/Finance/PMTPV.lesson

payments made at the end of the time period are assumed.

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