Question

The Hughes purchased a new condo for $ 1,000,000. at 8 % for 30 years. What is the monthly payment?

Answer 1

we know that

P = A/D
Where,
P = monthly payments,
A = Total amount =$1,000,000

`D=[(1+r/12) ^(12*t)-1]/[(r/12)*(1+r/12)^(12*t)]`

in this problem

t=30 years
r=8%----> 0.08


`D=[(1+0.08/12) ^(12*30)-1]/[(0.08/12)*(1+0.08/12)^(12*30)] =136.2835`


`P=1000000/136.2835-----\ \textgreater \ P=$7337.65`


the answer is
$7337.65