You want to buy a house that costs $255,000. You will make a down payment equal to 20 percent of the price of the house and finance the remainder with a loan that has an interest rate of 5.37 percent compounded monthly. If the loan is for 30 years, what are your monthly mortgage payments?
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|Down payment = 255000*20%||$51,000|
|Loan amoount = 255000*80%||$204,000|
|we have to use financial calculator to solve this problem|
|Put in calculator below -|
|I||5.37%/12||0.44750%||Monthly interest rate|
|N||=30*12||360||Number of period|
|therefore monthly installment =||$1,141.71|
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