Answer:
The monthly payment would be $1,937.12
Step-by-step explanation:
1. Organize the data:
Initial Value= $345,000
Down Payment = 10% of Inicial Value
Nper (Number of payments)= 30 years
Rate = 6.375%
2. Down Payment
As it is 10% of the Initial Value, you could calculate it as is shown in the following:
10% = \(\frac{10}{100}\) = 0,1
10% \((345,000)\) = 0,1 345,000 = 34,500
3. Present Value (PV)
The total amount that will be borrow is:
PV = Initial Value - Down Payment
\(PV=345,000 - 34,500\\ PV=310,500\)
4. Adequate the data: To determine the monthly payment is better adequate the Nper and Rate in months as following:
\(Nper=30 years*\frac{12 months}{1 year} =360 months\\Rate= \frac{6.375}{12}=0.531\) %= 0.00531
5. Apply the equation: Remember that the equation that calculate the payment for a loan based on constant payments is:
\(c=\frac{PV*Rate}{1- (1+Rate)^{-Nper}}\)
6. Perform the equation: Replace the numbers in the corresponding variables of the upper equation.
\(c=\frac{310,000*0,00531}{1- (1+0,00531)^{-360}}\\c=1,937.12\)
Finally, the monthly payment would be $1,937.12
