Please calculate the monthly mortgage and interest payment and show a clear and step-by-step...

Question:

Please calculate the monthly mortgage and interest payment and show a clear and step-by-step calculation. Recently, you find a house with market value $500,000, interest rate 5.25%, and 20 years term loan. You also put $80,000 as a down payment. Please calculate your monthly payment.

Mortgage Payments:

Mortgages are often repaid through monthly payments over a fixed amount of time. These monthly payments have a discounted present value that is equal to the amount borrowed. The monthly payment is higher when the amount borrowed higher, when interest rate is higher, or when the term of mortgage is shorter.

Answer and Explanation:

The monthly payment is $2,830.14.

We can use the following formula to compute the monthly payment of a mortgage with loan amount {eq}P {/eq},...

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Calculating Monthly Loan Payments

from Remedial Algebra I

Chapter 25 / Lesson 8
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