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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 40% down. Assume that the monthly cost to finance $1,000 is $6.00. What are the monthly payments

  • Finance -

    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.

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