Question

Susan gets a home loan of $300,000 at a rate of 6.8% compounded monthly for 30 years. What is her monthly payment?

Answer 1

Answer:

$1,955.86

Step-by-step explanation:

We have to use the MS Excel to solve this question

PV = -300000

FV = 0    

I = 6.8%/12 = 0.5667%    

N = 30*12 = 360

Monthly payment = PMT(-PV, FV, I, N)

Monthly payment = PMT(-300,000, 0, 0.5667%, 360)

Monthly payment = $1955.8555499

Monthly payment = $1,955.86

So, her monthly payment is $1,955.86.