Answer:
The correct answer is $1202.37.
Explanation:
According to the scenario, the given data are as follows:
Cost of house = $200,000
Down payment = $200,000 × 10% = $20,000
Loan amount ( p)= $200,000 - $20,000 = $180,000
Interest rate (r) = 5.15%
Loan period = 20 years
Loan period (monthly) (t) = 240 months
So, we can calculate the monthly payment by using following formula:
Monthly payment = p × r × ( 1 + r )^t ÷ (( 1 + r)^t -1)
= $180,000 × 0.0515÷12 × ( 1 + 0.0515÷12)^240 ÷ (( 1 + 0.0515÷12)^240-1)
= 772.5 ( 2.79378638786 ) ÷ (1.00429)^240 -1)
= 2156.803 ÷ (1.79378638786 )
= $1202.37
