Problema Solution
The cost of a house is $98,000. The down payment is $16,000, the interest rate is 61 over 2 %, and the loan period is 25 years. What is the monthly mortgage payment?
Answer provided by our tutors
P = 98,000 - 16,000 = $82,000
r = 61/2 = 30.5% or 0.305
i = 0.305/12
t = 25 years
n = 12*25 = 300 monthly payments
R = monthly payment
R = (P*i)/(1 - (1 + i)^(-n))
R = 82000*( 0.305/12)/(1 - (1 + 0.305/12)^(-300))
R = $2,085.29
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