QQuestionMathematics
QuestionMathematics
"Question content area top
Part 1
Use
PMT=Prn^1−1 +rn−nt
to determine the regular payment amount, rounded to the nearest dollar.The price of a home is
$340,000.
The bank requires a
5%
down payment. After the down payment, the balance is financed with a
15-year
fixed-rate mortgage at
7%.
Determine the monthly mortgage payment (excluding escrowed taxes and insurance) to the nearest dollar."
6 months agoReport content
Answer
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Step 1: Calculate the down payment amount.
Down payment $$ = 0.05 imes $340,000 = $17,000
The bank requires a 5% down payment, so we need to find 5% of $340,000:
Step 2: Calculate the amount to be financed.
Financed amount $$ = $340,000 - $17,000 = $323,000
The financed amount is the home price minus the down payment:
Final Answer
The monthly mortgage payment is $2,379.
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