You are considering purchasing a new home. You will need to borrow $290,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage (240 months) at (1% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to ________.
A) $2554
B) $4470
C) $3193
D) $5109

Question

You are considering purchasing a new home. You will need to borrow $290,000 to purchase the home. A mortgage company offers you a 20-year fixed rate mortgage (240 months) at  (1% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to ________.
A) $2554 
B) $4470 
C) $3193 
D) $5109

Quizplus · Accepted Answer

C) PV = 290,000
I = 1
N = 240
FV = 0
Compute payment = $3193.15.

You Are Considering Purchasing a New Home