Question

1. Suppose you are buying your first condo for $440,000, and you will make a $30,000 down payment. You have arranged to finance the remainder with a 30-year, amortized mortgage at a 5.4% interest rate. You will make monthly payments with the first payment due in one month. Assuming that the sellers accept the offer, what will your monthly payments be? Do this on excel.

Answer 1

Monthly payment		=	=pmt(rate,nper,-pv)
		=	$ 2,302.28
Where,
rate	Monthly interest rate		=	5.40%	/	12	=	0.0045
nper	Number of periods		=	30	*	12	=	360
pv	Loan amount		=	$       4,40,000	-	$       30,000	=	$       4,10,000