You have just taken out a 30-year mortgage on your new home for $120,000.This mortgage is to be repaid in 360 equal monthly installments.If the stated (nominal)annual interest rate is 14.75 percent,what is the amount of each of the monthly installments? Round to the nearest whole dollar.
A) $1,515
B) $1,472
C) $1,493
D) $1,522
E) $1,440

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1a_2a65_a768_ff3a3e3ec709_TB2902_11 PMT = PV / 11ea7fdb_fc1a_2a66_a768_47bb08ad9db1_TB2902_11 PMT = 120,000 / 11ea7fdb_fc1a_2a67_a768_0d1c21d7862e_TB2902_11 = $1,493.29
Using a financial calculator:
N = 360, I/Y = 1.229166, PV = -120,000, FV = 0, cpt PMT = $1,493.37

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