Question 1182343
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A store was purchased for 725,000 and the buyer made a 10% down payment. The balance was financed 
with a 6.35% loan for 27 years. Find the monthly payment.
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        The solution in the post by @mananth is INCORRECT.

        He uses irrelevant methodology, which has no any relation to this problem.

        I came to provide a correct solution using a standard methodology for this kind loan problems.



<pre>
The loaned amount is  725000 - 0.1*725000 = 652500 dollars.


Use the standard formula for the monthly payment for a loan

    M = {{{L*(r/(1-(1+r)^(-n)))}}}


where L is the loan amount;  r is the effective interest rate per month;
n is the number of payments (same as the number of months); M is the monthly payment.


In this problem  P = $652,500;  r = {{{0.0635/12/12}}};  n = 12*27 = 324.


Substitute these values into the formula and get for monthly payment

    M = {{{652500*(((0.0635/12))/(1-(1+0.0635/12)^(-324)))}}} = $4215.22.


<U>ANSWER</U>.  The monthly payment is $4,215.22.
</pre>

Solved correctly and explained completely.