PLEASE HELP! The purchase price of a home is $265,000. You make a down payment of 20% of the purchase price and finance the remaining amount with a 30-year home mortgage loan with an APR of 3.6%, compounded monthly. Compute the value of the monthly payment.
Give answer rounded to the nearest whole number.

Question

PLEASE HELP! The purchase price of a home is​ $265,000. You make a down payment of​ 20% of the purchase price and finance the remaining amount with a​ 30-year home mortgage loan with an APR of​ 3.6%, compounded monthly. Compute the value of the monthly payment.
Give answer rounded to the nearest whole number.

vuriffy · Answer

A = P (1 + r/n)^(nt)
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial deposit or loan amount)
r = the annual interest rate (decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested or borrowed for