Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 40% down. Assume that the monthly cost to finance $1,000 is $6.00. What are the monthly payments

let the payment be x

you are financing 60% of 450000 or 270,000

270,000 = x( 1 - 1.005^-360)/.005
270,000 = x(166.7916144)
x = 1618.79

The fact that "the monthly cost to finance $1000 is $6" is useless information and is actually incorrect.

To calculate the monthly mortgage payments, you need to know the loan amount and the interest rate. In this case, the loan amount will be the purchase price minus the down payment.

1. Calculate the down payment:
The down payment is 40% of the home price, which is 40% of $450,000:
Down Payment = 0.4 * $450,000 = $180,000

2. Calculate the loan amount:
Loan Amount = Purchase Price - Down Payment
Loan Amount = $450,000 - $180,000 = $270,000

3. Calculate the monthly interest rate:
The annual interest rate is 6%, so the monthly interest rate will be 6% divided by 12 (months):
Monthly Interest Rate = 6% / 12 = 0.06 / 12 = 0.005

4. Calculate the number of monthly payments:
Since it is a 30-year mortgage, the number of payments will be 30 years * 12 months/year = 360 months.

5. Calculate the monthly mortgage payment:
Monthly Payment = Loan Amount * Monthly Interest Rate / (1 - (1 + Monthly Interest Rate) ^ -Number of Payments)

Substituting the values:
Monthly Payment = $270,000 * 0.005 / (1 - (1 + 0.005) ^ -360)
Monthly Payment ≈ $1,619.72

Therefore, the monthly mortgage payment for a $450,000 home with a 30-year mortgage at 6% interest and a 40% down payment is approximately $1,619.72.