SOLUTION: Refinancing a mortgage: A real estate Speculator purchases a tract of land for $1000000 and assumes a 25 year mortgage at 4.2% interest compounded monthly What is his monthly pay

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Refinancing a mortgage: A real estate Speculator purchases a tract of land for $1000000 and assumes a 25 year mortgage at 4.2% interest compounded monthly What is his monthly pay      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1139951: Refinancing a mortgage: A real estate Speculator purchases a tract of land for $1000000 and assumes a 25 year mortgage at 4.2% interest compounded monthly
What is his monthly payment?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
payment at the end of each month = $5,389.42 according to the results from the use of the following calculator.

https://arachnoid.com/finance/

here's a display of the results.

$$$

inputs to the calculator were:

present value = 1,000,000.
future value = 0
number of time periods == 25 years * 12 months per year = 300 months.
interest rate per time period == 4.2% per year / 12 = .35% per month.
payments are made at the end of each month.

click on pmt and the calculator tells you that the monthly payment needs to be $5389.42.

it is shown as negative because it's money going out.