Question

A sailboat costs $ 19,079. You pay 15 % down and amortize the rest with equal monthly payments over a 13​-year period. If you must pay 8.1 % compounded​ monthly, what is your monthly​ payment? How much interest will you​ pay? Monthly​ payments: ​$ nothing ​(Round to two decimal​ places.)

Answer 1

Information provided:

Cost of sailboat=  $19,079

Down payment= 0.15*$  $19,079 = $2.861.85

Loan= Present value= $19,079 - $2.861.85= $16,217.15

Time= 13 years*12= 156 months

Monthly interest rate= 8.1%/12= 0.6750%

The monthly mortgage payment is calculated by entering the below in a financial calculator:

PV= -16,217.15

N= 156

I/Y= 0.6750

Press the CPT key and PMT to compute the monthly payment.

The value obtained is 168.44.

Therefore, the monthly mortgage payment is $168.44.

Interest payment: ($168.44*156) - 16,217.15

= $26,276.88 - 16,217.15

= $10,059.73.