Answer:
$714.99
Explanation:
The loan calculator I used is at (https://www.firstbank.com/calculator/mortgage-loan)
I inputted the mortgage loan which is the purchase price of the house minus the down payment
down payment=$250,000*20%
down payment=$50,000
mortgage loan=$250,000-$50,000
mortgage loan=$200,000
Term=35 years
Interest rate=2.5%
Report monthly amortization=$714.99
We confirm the above using a financial calculator bearing in mind that the calculator would be set to its default end mode before making the following inputs:
N=420(number of monthly payments in 35 years=35*12=420)
I/Y=2.5/12(monthly interest rate without the "%" sign)
PV=-200000(the mortage loan)
FV=0(the loan outstanding after all monthly payments have been would be nil)
PMT=$714.99
