# algebra

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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?

• algebra -

"..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 -

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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