Question

I'm stuck on this question !

Bob has a 30-year adjustable rate mortgage that has a rate of 2.8% for the first 3 years. The amount of the mortgage is $109,000. What is the monthly payment during this initial period?

Answer 1

At 2.8%, the mortage payment annual is $3052. For monthly payments, it is $254.33

Answer 2

From Susil on Yahoo Answers

Answer 3

http://answers.yahoo.com/question/index?qid=20120710021208AAuUeMD

Answer 4

Next time you have a math question, type it into google first before coming here

Answer 5

@cebroski
Bob has a 30-year adjustable rate mortgage that has a rate of 2.8% for the first 3 years. The amount of the mortgage is $109,000. What is the monthly payment during this initial period?

$302.77

$311.26

$447.87

$505.62

Answer 6

its not in the answer !

Answer 7

Okay, here's the formula you need. You're going to compute the monthly payment on a 30 year mortgage at 2.8% — the business about the rate changing after 3 years is irrelevant during the first 3 years.

\[M=\frac{P(i(1+i)^n)}{((1+i)^n-1)}\]
\(P\) is the amount borrowed, \(i\) is the monthly interest rate expressed as a decimal (so this will be 1/12 of the yearly rate), \(n\) is the number of compounding periods (30*12)

If you do the calculation correctly, you'll find the answer on the list.