Question

A investor obtained a loan of $600,000 to buy a car wash business. The monthly mortgage payment was based on 30 years at 5.5%. Find the monthly mortgage payment.

Answer 1

The monthly mortgage payment is $ 8306.58

Explanation:

Given as :

The loan taken as $ 600,000

The rate of interest = 5.5 %

The time period = 30 Years

So, from compounded method

Amount = principal ×
`(1 +(Rate)/(100))^(Time)`

or, Amount = $ 600,000 ×
`(1 +(5.5)/(100))^(30)`

Or, Amount = $ 600,000 ×
`(1.055)^(30)`

∴ Amount = $ 2990370.77

Now for The monthly mortgage payment

∵ Time period is 30 years

So , 30 years = 12 × 30 = 360 months

∴ Amount payment in monthly =$
`(2990370.77)/(360)`

Or, Amount payment in monthly =$ 8306.58

Hence The monthly mortgage payment is $ 8306.58 Answer