Mandy obtains a $155,000 20/6 balloon mortgage with a rate of 4.25%. What will her monthly payments be?

$959.81

$1044.46

$1110.47

$1225.74

Question

Mandy obtains a $155,000 20/6 balloon mortgage with a rate of 4.25%. What will her monthly payments be?

 $959.81

 $1044.46

 $1110.47

 $1225.74

anonymous · Answer

I know I use this B=B[((1+i)^(n*t)-(1+i)^(m))/((1+i)^(n*t)-(1))

anonymous · Answer

B=1550
r=0.0425
n=12
i=r/n=0.0425/12=0.0035416667
t=20
m= ?

anonymous · Answer

@ankit042

ankit042 · Answer

Use the annuity(PMT) formula you identified the variables correctly

ankit042 · Answer

I am getting A as the answer

anonymous · Answer

whats the PMT  ? and thank you

ankit042 · Answer

PMT is term used for periodic payments. If you use excel for your calculations there is a formula where you just have to put the values

anonymous · Answer

can I get the formula ?

ankit042 · Answer

@NaCl you can try this http://spreadsheets.about.com/od/excelfunctions/qt/20071020.htm