SOLUTION: Can you please help me with this problem? I've been trying to figure it out but I'm stuck. I appreciate any help. Juanita and Liz are buying a house. They have $23000 for a down

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Can you please help me with this problem? I've been trying to figure it out but I'm stuck. I appreciate any help. Juanita and Liz are buying a house. They have $23000 for a down       Log On

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Question 1157355: Can you please help me with this problem? I've been trying to figure it out but I'm stuck. I appreciate any help.
Juanita and Liz are buying a house. They have $23000 for a down payment. The house price is $157000. If the interest rate is 5.6% compounded monthly, determine the size of the monthly payments they must make over the next 30 years to pay off the house.
Express your answer rounded to the nearest cent!
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use of a financial calculator will solve this easily.
my calcuclator is the texas instruments business analyst II.
inputs are:
house price is 157,000.
down payment of 23,000 means 157 - 23 = 134,000 must be financed.
inerest rate is 3.6% compounded monthly.
mortgage is for 30 years.
your inputs to this calculator will be:
present value = 134,000
future value = 0
interest rate per month = 5.6% per year 12 = .46666666...% per month.
number of months = 30 years * 12 = 360 months.
payments are made at the end of each month.
stick that in your calculator and have the calculator give you the monthly payment of 769.27 per month, rounded to the nearest penny.
there's an online calculator that does the same thing.
here's what the output of that calculator looks like.

$$$

here's some formulas that can sometimes be used.
https://www.algebra.com/algebra/homework/Finance/THEO-2016-04-29.lesson
the particular one that applies to your problem is shown below.
be sure to enter the inputs into your calculator exactly in the format shown.
otherwise you stand a good change of not getting the right answer.

ANNUITY FOR A PRESENT AMOUNT WITH END OF TIME PERIOD PAYMENTS
a = (p*r)/(1-(1/(1+r)^n))
a is the annuity.
p is the present amount.
r is the interest rate per time period.
n is the number of time periods.

your inputs to this formula would be as shown below.

(134000*.056/12)/(1-(1/(1+.056/12)^360))

your output will be 769.2658341 which is rounded to 769.27.