2. Compute the down payment, amount financed, and the monthly mortgage payment (

Question

2. Compute the down payment, amount financed, and the monthly mortgage payment (showing how to use the appropriate financial formula).

HOME PRICE                   $128,900

LOAN AMOUNT               $103,200

DOWN PAYMENT            20% ($25,800)

INTEREST RATE             3.6%

LOAN TERM                    30 years

MONTHLY PAYMENT     $469     

So I have all the solutions here because I used online calculators from bank websites but I don't know how to do the actual formulas, please type out the actual formulas so i know how to do this without the bank websites.

Explanation / Answer

EMI = [P×r×(1+r)^n]÷[(1+r)^n-1]

P is Principal payable

r is interest rate per period i.e. 0.3% (3.6%÷12)

n is number of payments 360 (12×30)

EMI = [$103,200×0.3%×(1+0.3%)^360]÷[(1+0.3%)^360-1]

EMI = $469

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