document.write( "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. \n" ); document.write( "

Algebra.Com's Answer #812320 by mananth(16946) $\"\"$ $\"About$

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\n" ); document.write( "Selling price = 725000
\n" ); document.write( "down payment = 10% of 725000 =72500
\n" ); document.write( "interest rate = 6.35% =0.0635
\n" ); document.write( "time = 27 years = 324 months (27 * 12)
\n" ); document.write( "First, we will compute the total interest for the loan
\n" ); document.write( "I = P * R * T
\n" ); document.write( "I = (725000 - 72500)(0.0635)(27)\r
\n" ); document.write( "\n" ); document.write( "I = 1118711.25\r
\n" ); document.write( "\n" ); document.write( "Next, compute the maturity value which is the principal plus the interest
\n" ); document.write( "M = P + I
\n" ); document.write( "M = 652500 + 1118711.25
\n" ); document.write( "M = 1770711.25
\n" ); document.write( "Now, compute the monthly payment by dividing the maturity value by the number of
\n" ); document.write( "months in the loan.
\n" ); document.write( "Monthly payment = M ÷ 324
\n" ); document.write( "Monthly payment = 1770711.25 ÷ 324
\n" ); document.write( "Monthly payment = 5465.16
\n" ); document.write( "The monthly payment would be $ 5465.16 \n" ); document.write( "

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