mike is buying a house for $300,000. He is putting a down payment of $30,000 down on the house. Mike's loan will be at 5% over 30 years. how much will his monthly mortgage payment be?
$300,000 - $30,000 =$270,000 Mortgage amount Mike must borrow.
Use this formula to calculate the monthly payment:
PMT=PV. R.{[1 + R]^N/ [1 + R]^N - 1}
PMT =270,000 x 0.05/12{[1 + 0.05/12]^(30*12) / [1 + 0.05/12]^(30*12) - 1}
PMT =1,125 x [ 4.467744314 / 3.467744314]
PMT =1.125 x 1.288371895...
PMT =$ 1,449.42 - Mike's monthly payment on his mortgage.