Suppose you are buying your first condo for $145,000, and you will make a $15,00
ID: 2708724 • Letter: S
Question
Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Suppose you are buying your first condo for $145,000, and you will make a $15,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be?Explanation / Answer
answer = $821.69
Years 30 N 360
Payments/year 12 Periodic rate 0.54%
Nominal rate 6.50% PV $130,000
Purchase price $145,000 FV $0.00
Down payment $15,000 PMT $821.6
answer = $821.6