Question

You just purchased a $300,000 condo in New York City and have made a down payment of $60,000. You can amortize the balance at 3% per annual compounded monthly for 30 years. What are your monthly payments on the loan?

A. $1000.64

B. $1011.85

C. $1264.81

D. $1317.23

From the previous question #20, what is the balance after the first payment?

A. $223,659.50

B. $239,588.15

C. $364,266.00

D. None of above

Answer 1

Loan Remaining = Total amount - down payment

= 300000 - 60000 = $240000

Q19

Monthly Payment = $1011.85 Answer

Q20

Balance at the end of year 1 = Beginning amount for year 1 -(Monthly payment - interest )

Interest = Balance remaining * (0.03/12) = 240000 *0.03/12 = 600

Balance at the end of year 1 = 240000 - (1011.85 - 500)

= $239588.15 Answer

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