Ironwood bank is offering a 30 -year mortgage with an APR of 6.00 % based on monthly compounding. if you plan to borrow $ 160,000 , what will be your monthly payment?

Question

asked Nov 20, 2019 178k views

1 Answer

Smurtagh · Answer 1 · 2019-11-24T17:28:23+0000

$160000 x 1.06 = $169600

$169600 - 160000 = $ 9600 per year

$9600 / 12 = $ 800 per month

160000 / 360 month = $ 444.44 per month

800 + 444.44 = $ 1244.44 monthly peyment