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iRoal Portal CSepub Electronic Publishing D csePub-Electronic Publishing e 7edit

ID: 2809819 • Letter: I

Question

iRoal Portal CSepub Electronic Publishing D csePub-Electronic Publishing e 7edit CSePub Home Book St H M ico disarms /capulco police x e × C https://www.csepub.com/exercise/users answers/8297957/edit CSePub Home Book Store Independent Authors About Your Cart tems:Total: $99.99 View Cart A couple has ust purchased a home for $389,400.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 5.28% APR with monthy compounding. The mortgage has a term ot 30 years. What is the monthly payment on the loan? Answer Format: Currency: Round to: 2 decimal places. Enter Answer Here Submit Answer + Prev Problem A Problems Next Problem Contact Us Privacy Policy TeTIs Copyright 2018 Conley Smith Publishing. All Right reserved. O Type here to search 1223 AM 9/26/2018

Explanation / Answer

Given Information

Present Value of Loan = 80% of House Value as they are giving 20% cash

=0.80*389400= $311520

Rate =5.28/12 = 0.440% as it is compunded monthly

n = 30.*12=360 as it is compounded monthly

Monthly payment =r*PV/(1-(1+r)^-n)

=(0.0044*311520)/(1-1.0044^-360)

=1370.688/0.7941

$1726.02