You want to purchase a $200,000 house and have a 20% down payment. You enter into a 30 year mortgage at a rate of 4.5%. What is your monthly payment?
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The amount of mortgage after paying the down payment is = $160,000 ($2,00,000*0.8)
So, PV = $160,000
N = 30*12 = 360 (since 1 year has 12 months, 30 years has 360 monthly payments )
I/Y = 0.375% (4.5%/12)
So, compute the PMT = ($810.6965)
So, the monthly payments are 810.6965
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