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You are going to borrow $500,000 to buy a house. assume an annual interest rate of 8%. the length of the loan is 30 years and you are making payments at the end of each month. your monthly payment is _____.

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Aliwohaish12
The formula of the present value of an annuity ordinary is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
PV present value 500000
PMT monthly payment?
R interest rate 0.08
K compounded monthly 12
N time 30 years
Solve the formula for PMT
PMT=pv÷ [(1-(1+r/k)^(-kn))÷(r/k)]
PMT=500,000÷((1−(1+0.08÷12)^(
−12×30))÷(0.08÷12))
=3,668.82...answer

Hope it helps!
batolisis

Answer:

The monthly payments will be approximately $4722.16

Explanation:

loan amount: $500000

annual interest on loan: 8%

loan duration: 30 years

To get the annual interest to be paid on loan will be

8% of $500000 = 0.08 * $500000 = $40000

therefore the total interest to be paid in 30 years will be

$40000 * 30 years = $1200000

The total amount of loan to be paid in 30 years will then be

loan amount + total interest = $500000 + $1200000 = $1700000

making monthly payment this total amount to be paid over 30 years will be

Yearly payment

$1700000 ÷ 30 years ≈ $56666

Monthly payment

$56666 ÷ 12 months in a year ≈ $4722.16

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