Question

What are the monthly payments on a $500,000 30-year mortgage loan that has an interest rate of 5.79% EAR? Please answer using a financial calculator.

Answer 1

APR = [(1+EAR)^(1÷n)-1]×n
n is number of compounding per year
	Monthly compounding	5.64%	=((1+5.79%)^(1/12)-1)*12

Step 1	Enter	360
Step 2	Press	N
Step 3	Enter	0
Step 4	Press	FV
Step 5	Enter	-500000
Step 6	Press	PV
Step 7	Enter	0.4700	=5.64/12
Step 8	Press	I/Y
Step 9	Press	CPT
Step 10	Press	PMT
Payment		2,883.02

Hence, Monthly payment is $2,883.02