You put 20% down on a home with a purchase price of $150,000, or $30,000. The remaining balance will be $120,000. A bank will loan you this remaining balance at 4.375% APR
You will make monthly payments with a 20-year payment schedule. What is the monthly annuity payment under this schedule?
A) $751.11
B) $830.53
C) $910.12
D) $5,250.18
Answer: A
Explanation: A) The bank loan of $120,000 is the PV.
The PVIFA using r = = 0.36458% and n = 20 × 12 = 240 periods is 159.7643.
The monthly annuity payment = PMT = = = $751.11.
MODE = END
INPUT 240 4.375/12 -120,000 ? 0
KEY N I/Y PV PMT FV
CPT 751.11
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