Question 849359
home costs 116,000
20% down equals 23,200
subtract 23,200 from 116,000 to get a mortgage of 92,800.
mortgage of 92,800 for 20 years compounded monthly would require a monthly payment of $713.55 per month rounded to the nearest penny.


i used a financial calculator to find the result.
you can, however, reproduce the same result by formula.


the formula that would be used can be found at the following link:


<a href = "http://www.algebra.com/algebra/homework/Finance/PMTPV.lesson" target = "_blank">http://www.algebra.com/algebra/homework/Finance/PMTPV.lesson</a>


payments made at the end of the time period are assumed.