The Washingtons buy a $260,000 home by putting 20% down and financing the balance with
a 30-year fixed-rate 4.2% mortgage, compounded monthly. What is the amount of their monthly
loan payment to amortize the loan?
i = .042/12 = .0035
n = 30(12) = 360
PV =.8(260000) = 208,000
let the payment be P
P( 1 - 1.0035^-360)/.0035 = 208000
P = $1017.16