Michael Sanchez purchased a condominium for $76,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. Round your answers to the nearest cent.
What is the amount (in dlls) of the monthly fixed payment, R, of Michael's loan?
amount to be mortgaged = .8(76000) = 60800
i = .05/12 = .00416666...
n = 360
paym = ?
now just use the standard formula:
paym(1 - 1.00416666.^-360)/.00416666... = 60800
I get paym = $326.39
( a condo for $76,000 in 2022 ? Time to update those textbooks )