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You are a financial advisor and your customer Jerry wants to buy a condo with a...

You are a financial advisor and your customer Jerry wants to buy a condo with a 30 year mortgage. Jerry's monthly payment will be $3k and the interest rate is 0.003% per month. What is the price of his condo?

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Answer #1

If the interest rate per month is 0.003% So the annual rate is 0.003% x 12 = 0.036%

We are given the following information:

Payment PMT 3000.00
Rate of interest r 0.04%
Number of years n 30.00
Annual frequency 12.00
Loan amount or the Price of a Condo PV To be calculated

We need to solve the following equation to arrive at the required PV

So the PV or the Price of the Condo is 1,074,172.91

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