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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?
Steps or examples please

  • 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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