You want to purchase a new condominium that costs $285,000.Your plan is to pay 30 percent down in cash and finance the balance over 30 years at 5.2 percent.What will be your monthly mortgage payment including principal and interest?

Question

Quizplus · Accepted Answer

The correct answer is A.The monthly mortgage payment can be calculated using the following formula:Monthly payment = (Loan amount * Annual interest rate / 12) / (1 - (1 + Annual interest rate / 12)^(-Number of months))In this case, the loan amount is $285,000 * 0.7 = $199,500, the annual interest rate is 5.2%, and the number of months is 30 * 12 = 360.Plugging these values into the formula, we get:Monthly payment = (199,500 * 0.052 / 12) / (1 - (1 + 0.052 / 12)^(-360))= $1,095.48

You Want to Purchase a New Condominium That Costs $285,000