Finance Math
posted by Heyhi
Oprah Winfrey has closed on a 42acre estate near Santa Barbara, California, for $50,000,000. If Oprah puts 20% down and finances at 7% for 30 years, what would her monthly payment be?

MsPi_3.14159265
LOL! Someone asked this same question yesterday... but did not respond when I asked what is the compounding of the loan??

Heyhi
It was me, I am sorry I did not see what you posted. This problem is related to PMT and then you're supposed to find interest with P1 and P2.

MsPi_3.14159265
Steve wrote a nice solution several years back...
M = Pr/(1(1+r)^n)
= 40,000,000*(.07/12)/(1(1+.07/12)^(12*30))
= 266121 
Reiny
I will assume the compounding is monthly to match the payment period, or else we have a messy solution
i = .07/12 = .00583333...
n = 360
paym(1  1.0058333..^360)/.00583333... = .8(50000000)
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Oprah Winfrey has closed on a 42acre estate near Santa Barbara, California, for $50,000,000. If Oprah puts 20% down and finances at 7% for 30 years, what would her monthly payment be?