Homework Help: finance

Posted by ananoumous on Sunday, March 14, 2010 at 9:17pm.

3. You decide to borrow $200,000 to build a new house. The bank charges an interest rate of 6% compounded monthly. If you pay the loan back over 30 years, what will your monthly payment be [rounded to the nearest dollar]?

finance - Reiny, Sunday, March 14, 2010 at 11:58pm
200000 = pay[1 - 1.005^-360]/.005
1000 = paym[.833958072]
paym = 1000/.833958072
= $1199.10 or
$1199 to the nearest dollar

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