Question

You have contracted to buy a house for $521,250, paying $104,250 as a down payment and taking a fully amortizing mortgage for the balance at a 4.37% annual interest rate for 30 years. What will your monthly payment (covering principal and interest) be if you make monthly installments over the next 30 years (round to the nearest dollar).

Answer 1

Answer:

$2068.51

Explanation:

After paying $104,250, the remaining amount is $521,250 - 104,250 = $417,000

Input these following numbers into financial calculator:

PV = 417,000 (the amount owing)

i/r = 4.37% / year = 0.36%

n = 30 years = 360 months

FV = 0 (value at end of 30 years)

PMT = ? (Monthly payment = ?)

---> PMT = $2068.51 (The monthly installments over the next 30 years)