Question 1182343

Selling price = 725000
down payment = 10% of 725000 =72500
interest rate = 6.35% =0.0635
time = 27 years = 324 months (27 * 12)
First, we will compute the total interest for the loan
I = P * R * T
I = (725000 - 72500)(0.0635)(27)

I = 1118711.25

Next, compute the maturity value which is the principal plus the interest
M = P + I
M = 652500 + 1118711.25
M = 1770711.25
Now, compute the monthly payment by dividing the maturity value by the number of
months in the loan.
Monthly payment = M ÷ 324
Monthly payment = 1770711.25 ÷ 324
Monthly payment = 5465.16
The monthly payment would be $ 5465.16