Problema Solution
If a house sells for $107,000.00 with an interest rate of 41/2% what is the monthly payment for.
a. 15 years
b. 12 years
Answer provided by our tutors
Principal Amount=$107,000.00
Rate=4(1/2)%
Rate per month=9/24=0.375
EMI=(P*r*(1+r)^n)/(1+r)^n-1
i)Time (in months)=15*12=180
EMI=(107000*0.375*(1.375)^180)/(1.375)^180-1
which gives,EMI=$818.54
ii)Time (in months)=12*12=144
Similarly, Substituting values in formulae we get EMI=$963.01