Walker is buying a house for $225,000. He is financing $195,000 and obtained a 30-year, fixed-rate mortgage with a 6.625% interest rate. How much are his monthly payments?
PMT=PV. R.{[1 + R]^N / [1 + R]^N - 1}
PMT =195,000 x 0.00552083{[1 + 0.00552083]^(30*12) / [1 + 0.00552083]^(30*12) - 1}
PMT =195,000 x 0.00552083 x 1.159808533.....
PMT =$1,248.61 - The monthly payment.
