Question

If the purchase price for a house is $345,000, what is the monthly payment if you put 10% down for a 30 year loan with a fixed rate of 6.375%?
a.
$1,569.27
b.
$1,937.12
c.
$2,152.35
d.
$3,314.59

Answer 1

Loan = 345,000*(1 - 0.10) = 310,500
Monthly rate = 0.06375/12 = 0.0053125
N = 30*12 = 360

Monthly payment:
M = P * r / (1 - (1 + r)^(-N))
= 310,500 * 0.0053125 / (1 - (1.0053125)^(-360))
≈ $1,937.12

Answer: b.