You want to buy a house and will need to borrow 220000 The i

You want to buy a house and will need to borrow $220,000. The interest rate on your loan is 5.47 percent compounded monthly and the loan is for 20 years. What are your monthly mortgage payments? $1,502.78 $1,459.31 $1,585.11 $1,509.63 $1,530.30

Solution

Correct option is > $1,509.63

Using financial calculator BA II Plus - Input details:

#

I/Y = Rate = 5.47/12 =

0.455833

FV = Future value =

$0

N = Total payment term = 20*12 =

                                 240

PV = Present value of loan =

-$220,000

CPT > PMT = Monthly Payment =

$1,509.63