Determine the monthly principal and interest payment for a 20-year mortgage when the amount financed is $285,000 and the annual percentage rate (APR) is 4.0%. The monthly principal and interest payment
Determine the monthly principal and interest payment for a 20-year mortgage when the amount financed is $285,000 and the annual percentage rate (APR) is 4.0%. The monthly principal and interest payment
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Determine the monthly principal and interest payment for a
20-year
mortgage when the amount financed is
$285,000
and the annual percentage rate (APR) is
4.0%.
The monthly principal and interest payment is
$
Expert Solution
Step 1
Monthly interest and payment can be calculated using PMT function in excel
PMT(rate, nper, pv, [fv], [type])
- Rate The interest rate for the loan.
- Nper The total number of payments for the loan.
- Pv The present value
- Fv The future value
- Type The number 0 (zero) or 1 and indicates when payments are due.
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