Question

50 points!!
We would like to mortgage (borrow) $150,000 at 5.5% annual rate from the bank for a 30 year mortgage. What would our monthly payment be for the mortgage alone? (Answer for each of the following. Do not use "%" for I/Y. Place a "0" in any item that is N/A. Round to 2 decimal places)
N represents the number of periods
I/Y represents the interest per period
PV represents the present value (if we input a present value it must go in as a negative number)
PMT represent the equal payment required or give to us over time
FV represents the future value
Answer with each value for N, I/Y, PV, PMT, and FV.

Answer 1

Answer:

$853.57

Explanation:

Using financial calculator, we have the following inputs:

n = 360 (months) (30x12 = 360months. Because payment is made on monthly basis)

I/Y = 0.46% / month (5.5% /12)

PV = $150,000 (The amount we need to borrrow)

FV = 0 (the value of the mortgage is nil in 30 years)

PMT = ? (This is the missing value we need to find - The monthly payment for the mortgage)

--> PMT = $853.57