3. You decide to borrow $200,000 to build a new house. The bank charges an interest rate of 6% compounded monthly. If you pay the loan back over 30 years, what will your monthly payment be [rounded to the nearest dollar]?

Answer 1

200000 = pay[1 - 1.005^-360]/.005
1000 = paym[.833958072]
paym = 1000/.833958072
= $1199.10 or
$1199 to the nearest dollar