Finance
posted by Anonymous on .
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.