Question 1175398: You want to buy a 221,000 home. You plan to pay a 15% down payment, and take out a 30 year loan for the rest.
What will the monthly payments be if the interest rate is 6%?
What will the monthly payments be if the interest rate is 7%?
Found 2 solutions by Theo, MathTherapy:
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! using the calculator at , do the following:
15% of 221,000 = .15 * 221,000 = 33,150.
subtract that from 221,000 to get 187,850.
that's the amount you have to finance.
at 6% interest per year compounded monthly, your inputs will be:
pv = 187,850.
fv = 0
np = 30 years * 12 months per year = 360 months.
ir = 6% / 12 months per year = .5% per month.
payment at end of time period.
click on pmt to get a payment of 1,725.81 required at the end of each month for 360 months.
the results of that calculation are shown below:
at 7% interest per year compounded monthly, your inputs will be:
pv = 187,850.
fv = 0
np = 30 years * 12 months per year = 360 months.
ir = 7% / 12 months per year = .58333333333333% per month.
payment at end of time period.
click on pmt to get a payment of 1,915.07 required at the end of each month for 360 months.
the results of that calculation are shown below.
in both calculations, you enter the present value as positive and the monthly payment required is shown as negative.
that's because you will be receiving the present value while you will be spending the monthly payments.
you enter the interest rate as .5833333333333..... and the calculator uses that full value as entered, but it displays that number rounded to 6 decimal digits.
the results from the use of this calculator are rounded to the nearest penny.
Answer by MathTherapy(10551)  (Show Source):
You can put this solution on YOUR website!
You want to buy a 221,000 home. You plan to pay a 15% down payment, and take out a 30 year loan for the rest.
What will the monthly payments be if the interest rate is 6%?
What will the monthly payments be if the interest rate is 7%?
Correct answers: 
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