If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01

Question

Giana Bradley

Mathematics

2 December, 18:56

If the purchase price for a house is $309,900, what is the monthly payment if you put 20% down for a 30 year loan with a fixed rate of 6%? a. $729.98 b. $912.48 c. $1,486.41 d. $1,858.01

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Answers (2)

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Leroy Cross · Answer 1

Leroy Cross 2 December, 19:05

0

The answerto your question is c

Belinda Townsend · Answer 2

This can be solved using this formula:

P = [ (rM) / (1 - (1 + r/n) ^-nt) ] / n

Where P = the payment, r = the annual rate, M = the mortgage amount, t = the number of years, and n = the number of payments per year.

Solve for M = 309,900 x 0.80 = $247,920

P = [ (0.06*247,920) / (1 - (1 + 0.06/12) ^-12*30) ] / 12

P = $1486.41