Question 995483
The formula you need to use is
{{{PMT=PV*interest/(1-(1+interest)^(-n))}}} , 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
{{{"100%"-"20%"="80%"=0.8}}} of {{{"$330,000"}}} , or
{{{PV}}}{{{"="}}}{{{"$"}}}{{{330000*0.8}}}{{{"="}}}{{{"$"}}}{{{264000}}}
{{{n=30*12=360}}}
{{{interest="4.8%"/12=0.048/12=0.004}}}
{{{1+interest=1+0.004=1.004}}}
{{{PMT=264000*0.004/(1-1.004^(-360))=264000*0.004/(1-0.237609)=264000*0.004/0.732391=1358.12}}}(rounded to the nearest 0.01).