Question

Oprah Winfrey ha closed on a 42- acre estate near Santa Barbara California for $50,000,000 If Oprah puts down 20% down and finances at 7% for 30 years what would be her monthly pay payment.

Answer 1

So first 50000000 times .8 which is the opposite of 20% which gives you your first answer of 40 million left over. The equation for the interest after this is 40000000(0.7^30)

Answer 2

M = Pr/(1-(1+r)^-n)

= 40,000,000*(.07/12)/(1-(1+.07/12)^(-12*30))
= 266121