SOLUTION: Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $110,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%
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A $110,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%
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Question 849515: Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $110,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%
I got $270.11 but i don't think that is right. Answer by swincher4391(1107) (Show Source):
You can put this solution on YOUR website! So we make 360 payments and we originally put down 22000 or another way to see this is:
110000*(1-.20) = 88000
Our effective rate of interest monthly is i = .105/12 = .00875
Let's let a = (1-(1+.00875)^-360) /(.00875) in more advanced circles, you'll recognize this as the PV of an annuity. (1-v^n)/i where v is the discount factor (1/(1+i))
a = 109.32
We take 88000/109.32 = 804.98
