Asked by jessica

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]?

Answers

Answered by drwls
$1199.

See http://www.hsh.com/calc-amort-results.html?prin=200000&int=6.0&term=30&strt=Jan&stry=2010&full=No&ppay=0&apay=0&pay1=0&ppno=0

There is a formula for calculating it. You can find it by Googling "mortgage amortization"
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