Billy Bob and family are planning on purchasing a house for $160,000 using a 30

Question

Billy Bob and family are planning on purchasing a house for $160,000 using a 30 year fixed-rate mortgage from their local credit union. The mortgage rate offered to Billy Bob is 6.83%. Billy Bob will make a down payment of 20% of the purchase price to avoid PMI. What will be Billy Bob's monthly payment for principal and interest, excluding the escrow for taxes and insurance? (Answer in $s to the nearest penny, format xxx.xx with no $ sign needed.)

Imagine there is a $100,000 T-bill that matures in 130 days. The T-bill has a discount yield of 2.102%. Ignoring fees or commissions, how much in dollars would I pay for this T-bill? (Answer in $ format xxxxx.xx, with no $ sign needed.)

Explanation / Answer

1.
Using financial calcultor, setting the below:
PV=160000*(1-20%)
I/Y=6.83%/12
N=12*30
FV=0
CPT PMT=837.02
Hence, monthly payment is 837.02

2.
DIscount yield=(Par value-Purchase Price)/(Par value)*360/days to maturity
Hence,
2.102%=(1-Purchase Price/100000)*360/130
=>Purchase Price=100000*(1-2.102%*130/360)=$99240.94444

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