caram17
Answered

You have decided to buy a new home and the bank offers you a 10 year fixed loan at 5.0% on a balance of $275,325. Determine the monthly payments.

A$2,921.20 c. $1,460.60
B$137,500 d. $243.43

Verified Answer :

wolf1728

rate = 5 /1,200 =



0.0041666667




Monthly payment = (rate + (rate / [(1+rate)^months -1])) principal
Monthly payment =



0.0041666667


  • (



0.0041666667



/ ((1.0041666667^120)-1) principal

Monthly payment =

0.0041666667


  • (

0.0041666667


/ 0.6470094977



) principal

Monthly payment =

(0.0041666667 + 



0.0064398849





) 275,325







Monthly payment =



0.0106065515



  • 275,325

    Monthly payment = 2,920.25

View image wolf1728

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