Question 1121288
i used the following time value of money calculator.


it can be found at <a href = "https://arachnoid.com/finance/" target = "_blank">https://arachnoid.com/finance/</a>


the results of the use of that calculator are shown below:


<img src = "http://theo.x10hosting.com/2018/081402.jpg" alt="$$$" >


your inputs to this calculator are:


present value = 437000.


this is the purchase price of 487000 minus the 50000 down payment leaving 437000 that needs to be paid off by the mortgage.


future value = 0 because there should be no remaining balance in the account at the end of the mortgage period.


number of monthly periods = 28 years * 12 month per year = 336 monthly periods.


interest rate of 5% per year / 12 = monthly interest rate of .416667% per monthly period.


payments are to be made at the end of each month.


you click on PMT and the calculator tells you that the monthly payment is -2419.12 per month.


the present value is positive because it's money that you receive.


the payment is negative because it's money that you pay out.


your monthly payment is $2,419.12 per momth.