The price of a home is $185,000. A down payment of 10% is required with 2 points at the time of closing. The home is financed over a 25 year period with a fixed rate of 4.5%. Find the monthly payment and total interest paid?
Math - Henry, Thursday, March 7, 2013 at 6:53pm
% Financed = 100%-10% = 90%.
Po = 0.9 * 185000=$166500=Amt. Financed
P = Po(1+r)^n.
r = (4.5%/12)/100% = 0.00375 = Monthly %
rate expressed as a decimal.
n = 12Comp./yr * 25Yrs = 300 Compounding
Plug the above values into the given Eq and get:
P = $511,778.13.
I = P-Po