Question

Jamie purchased a condo for $89,900 with a down payment of 20%. She qualified for a 5% 15 year mortgage. What is Jamie’s monthly payment? (Round your answer to the nearest cent.)

Answer 1

Information provided:

Purchase price of condo= $89,900

Down payment= 0.20*$89,900= $17,980

Mortgage= $89,900 - $17,980= $71,920.

Time= 15 years*12= 180 months

Interest rate= 5%/12= 0.4167% per month

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

PV= -71,920

N= 180

I/Y= 0.4167

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

The value obtained is 568.75.

Therefore, Jamie's monthly payment is $568.75.

In case of any query, kindly comment on the solution.