Walker is buying a house for $225,000. He is financing $195,000 and obtained a 30-year, fixed-rate mortgage with a 6.625% interest rate. How much are his monthly payments?

$1,248.61
$1,076.56
$1,712.09
$1,440.70

Question

Walker is buying a house for $225,000. He is financing $195,000 and obtained a 30-year, fixed-rate mortgage with a 6.625% interest rate. How much are his monthly payments?

 $1,248.61
 $1,076.56
 $1,712.09
 $1,440.70

radar · Answer

Do you just want an answer or want to know how to work it out?

anonymous · Answer

I want to know how to work it out, I need to use this formula but I don't know where to plug in the numbers

radar · Answer

For some unknown reason I got booted off, have logged back on.

Good let me look at that link that shows the formula that you must use.

radar · Answer

I am going to assume that M is the monthly payment, that P is the principal, and i is the interest rate (annual), and t is the term or time for the loan.  i substitute then the formula would appear as:|dw:1422463780621:dw|
Is that the way you see it the 360 is the number of months in 30 years.