P = (Po*r*t)/(1-(1+r)^-t).
Po = 150,000-24,000 = $126,000.
r = 8.65%/(12*100%) = 0.0072.
t = 25yrs. * 12mo./yr. = 300 mo.
Monthly Payments = P/t.
Carlos and Max are buying a house. They have $24000 for a down payment. The house price is $150000. If the interest rate is 8.85% compounded monthly, determine the size of the monthly payments they must make over the next 25 years to pay off the house.
Express your answer rounded to the nearest cent!
1 answer
1 answer