SOLUTION: The Flemings secured a bank loan of $352,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computation

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Question 1200902: The Flemings secured a bank loan of $352,000 to help finance the purchase of a house. The bank charges interest at a rate of 3%/year on the unpaid balance, and interest computations are made at the end of each month. The Flemings have agreed to repay the loan in equal monthly installments over 25 years. What should be the size of each repayment if the loan is to be amortized at the end of the term? (Round your answer to the nearest cent.)
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use of the calculator at https://arachnoid.com/finance/ will help solve this.
here are the results.



the payment required at the end of each month is 1669.22.

present value is positive because it's money received
payment at the end of each month is negative because it's money spent.
interest rate per month is 3/12 = .25%
number of months is 25*12 = 300
the future value is 0 bgcause there is no more money in the account at the end of the payment period.