SOLUTION: You buy a house for $285,000. You put $60,000 down and take out a mortgage at 6.5% on the balance. Find your monthly payment if the length of the mortgage is 15 years.

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Question 1132008: You buy a house for $285,000. You put $60,000 down and take out a mortgage at 6.5% on the balance. Find your monthly payment if the length of the mortgage is 15 years.
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
So you need to finance $225000 at 6.5% for 15 years monthly.
N=15%2A12=180
i=0.065%2F12=0.005417
P=225000
So the monthly payment would be,
X=%28P%2Ai%29%2F%281-%281%2Bi%29%5E%28-N%29%29
Plug the values into the formula to get the answer.