Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, California, for

Question

Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, California, for $49,300,000. If Oprah puts 30% down and finances at 6.5% for 30 years, what would her monthly payment be? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, California, for $49,300,000. If Oprah puts 30% down and finances at 6.5% for 30 years, what would her monthly payment be? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

Explanation / Answer

Cost = $49,300,000 - ($49,300,000 x 0.30)

= $49,300,000 - $14,790,000

= $34,510,000

Cost with Interst = $34,510,000 + ($34,510,000 x 0.065 x 30

= $34,510,000 + $67,494,500

= $102,004,500

Payment per month = $102,004,500/360 months = $283,346

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