Homework Help: algebra

Posted by Torra on Wednesday, November 23, 2011 at 6:05pm.

Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 30% down. Assume that the monthly cost to finance $1,000 is $6.00. What are the monthly payments?
Steps or examples please

algebra - Reiny, Wednesday, November 23, 2011 at 8:30pm
"..the monthly cost to finance $1,000 is $6.00"
I read that to say that the monthly rate of interest is .006
after downpayment you are left with 315000 to mortgage
let the payment be P

315000 = P(1 - 1.006^-360)/.006
I get P = $2138.18
algebra - Torra, Saturday, November 26, 2011 at 5:14pm
Thanks. But I am trying to figure out how did you get $2138.18 I did the calculations but I do not come up with your answer.

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