Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $120,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%

Question

Find the monthly payment for the loan. (Round your answer to the nearest cent.)
A $120,000 home bought with a 20% down payment and the balance financed for 30 years at 10.5%

wolf1728 · Answer

The formula for this is pretty intimidating.  I answered a question like this last night so I'll try again.
The loan is for 120,000 then after the 20% down payment of 24,000, the loan is for
96,000.00 for 30 years at 10.5%
We need the rate divided by 1200 so that equals
0.00875 (monthly interest)
number of months = 360

monthly payment = {.00875 + .00875 / [((1+.00875)^360)-1]} * 96,000
monthly payment = (.00875 + .00875 /22.0185086616) * 96,000
monthly payment = (.00875 + 0.000397392944930708) * 96,000
monthly payment = (0.00914739294493071) * 96,000
monthly payment = 878.1497227133
monthly payment = 878.15 rounded
(I checked that with a loan calculator - it is correct).

anonymous · Answer

Ok thank you

wolf1728 · Answer

u r welcome.
(as I said that formula is very intimidating.)

anonymous · Answer

yes it is I have another one I'm working on

wolf1728 · Answer

Okay - let me know - I'll stick around.