Business Math

split level for 200,000 put down 30% assuming rate of 11 1/2% on 30-year mortgage, determine monthly payment.

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  1. P = (Po*r*t)/(1-(1+r)^-t).

    Po = 0.7*200,000 = 140,000.

    r = 0.115/12 = 0.009583/mo. = Monthly % rate.

    t = 30yrs. * 12mo./yr. = 360 mo.

    P = (140,000*0.009583*360)/(1-(1.009583)^-360) = 499,091.50.

    M.P. = P/360.

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