SOLUTION: I am using the following formula for the problem but I'm not getting the right answer. PMT=PV Interest/1-(1+interest)-n Problem: The Castlow family purchases a home for $330,0

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Question 995483: I am using the following formula for the problem but I'm not getting the right answer. PMT=PV Interest/1-(1+interest)-n
Problem: The Castlow family purchases a home for $330,000. They make a down payment of 20%, and finance the rest with a 30-year fixed mortgage at an annual interest rate of 4.8% compounded monthly. What is the amount of their monthly loan payment?
Answer by KMST(5328) About Me  (Show Source):
You can put this solution on YOUR website!
The formula you need to use is
PMT=PV%2Ainterest%2F%281-%281%2Binterest%29%5E%28-n%29%29 , where
PMT= monthly payment,
PV= present value of the loan,
n= number of payments, and
interest= interest rate per pay period (as a decimal) .
Since they make a down payment of 20%, the loan is
%22100%25%22-%2220%25%22=%2280%25%22=0.8 of %22%24330%2C000%22 , or
PV%22=%22%22%24%22330000%2A0.8%22=%22%22%24%22264000
n=30%2A12=360
interest=%224.8%25%22%2F12=0.048%2F12=0.004
1%2Binterest=1%2B0.004=1.004
(rounded to the nearest 0.01).