Wayne is buying a house for $205,000. He is financing $175,000 and obtained a 30-year, fixed-rate mortgage with a 6.425% interest rate. How much are his monthly payments?

Question

amistre64 · Answer

there is some formula in the material to assess this, but i never use it and simply make up my own formula

anonymous · Answer

$1,285.64 

 $936.48 

 $1,097.50 

 $1,517.23

amistre64 · Answer

$$Bk^n=P\frac{1-k^n}{1-k}$$
and solve for P

amistre64 · Answer

in this case, k is a compounding rate:  k = 1 + .06425/12

n is the number of payments to be made:  30*12

and B is the inital balance of the loan

amistre64 · Answer

putting it all together I get: http://www.wolframalpha.com/input/?i=175000k%5E%2830*12%29+%281-k%29%2F%281-k%5E%2830*12%29%29%3B+k%3D1%2B.06425%2F12

anonymous · Answer

thank u

amistre64 · Answer

yep, good luck