Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan...

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Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan...

Your monthly mortgage payment (principal plus interest) is $1,750 . If you have a 30-year loan with a fixed interest rate of 0.3% per month, how much did you borrow from the bank to purchase your house (rounded to the nearest whole dollar)? (Do not enter a dollar sign $ with your answer.)

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Answer 1

Answer #1

monthly payment = $ 1750

t = 30 x 12 = 360 months

i = 0.3% per month

PV = 1750/(1 + 0.3%) + 1750/(1 + 0.3%)² + ........ + 1750/(1 + 0.3%)²⁶⁰

PV = Amount borrowed = 384915.41

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Answer 2

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