SOLUTION: 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.
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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. Found 2 solutions by mananth, MathTherapy:Answer by mananth(16946) (Show Source):
You can put this solution on YOUR website!
Selling price = 725000
down payment = 10% of 725000 =72500
interest rate = 6.35% =0.0635
time = 27 years = 324 months (27 * 12)
First, we will compute the total interest for the loan
I = P * R * T
I = (725000 - 72500)(0.0635)(27)
I = 1118711.25
Next, compute the maturity value which is the principal plus the interest
M = P + I
M = 652500 + 1118711.25
M = 1770711.25
Now, compute the monthly payment by dividing the maturity value by the number of
months in the loan.
Monthly payment = M ÷ 324
Monthly payment = 1770711.25 ÷ 324
Monthly payment = 5465.16
The monthly payment would be $ 5465.16
You can put this solution on YOUR website!
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.
No SURPRISE here! That person, AS USUAL, is WRONG!
Correct monthly payment:
