Topic : Interest Applied on Payment.
Question : Noreen bought a house for $2,09,000. She paid 25% down and obtained 7-year mortgage at 7% per annum, amortized over 20 years. Calculate Noreen's monthly mortgage payment.
Answer :
7 year mortgage at 7% annual(assuming compounded annually)
amount = 209,000 * 0.75(since 25% is given as downpayment)= $ 156,750
Total amount with interest = 156750*(1+0.07)^7= 251,706
Monthly Amortized payments over 20 years is 251,706/240 = $1048.77
Hope the Solution is helpful for you.
No comments:
Post a Comment