SOLUTION: Joseph bought a townhouse in North riding for R700 000.he paid a deposit of R100 000 and managed to secure a loan for the outstanding amount. The term of the loan is 20 years and t

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Question 1160068: Joseph bought a townhouse in North riding for R700 000.he paid a deposit of R100 000 and managed to secure a loan for the outstanding amount. The term of the loan is 20 years and the interest rate is fixed at 7.75% per year, compounded monthly. Calculate Joseph minimum monthly payment to the nearest cent
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website!
use a financial calculator, such as the TI-BA-II.
townhouse was bought for 700,000.
deposit was 100,000.
600,000 was borrowed from the bank at 7.75% per year compounded monthly.
inputs are:
present value of loan is 600,000.
number of time periods is 20 years * 12 = 240 months.
interest rate per month is 7.5% / 12 = .625% per month.
payments are made at the end of each month.
future value of loan is 0.
payment at the end of each month is calculated to be 4833.559161.
rounded to nearest penny equals $4833.56.

a comparable financial calculator on the web can be found at https://arachnoid.com/finance/index.html

put the same inputs into the calculator and you will see that the results are the same.

Answer by MathTherapy(10552) (Show Source):
You can put this solution on YOUR website!

Joseph bought a townhouse in North riding for R700 000.he paid a deposit of R100 000 and managed to secure a loan for the outstanding amount. The term of the loan is 20 years and the interest rate is fixed at 7.75% per year, compounded monthly. Calculate Joseph minimum monthly payment to the nearest cent

Correct answer: At 7.75% annual interest rate, monthly payment is: