Are you sure youve got the details of the question right?
i got a premium of £1119.522 when i did it.
(method not shown , since it doesn't match the answer you say is correct)
$269,900 House
AIR (annual interest rate)-4.8%
Down Payment- $53,980
30 year mortgage
Payment||||||||| Balance Before|||||||||||| Payment|||||||||||||Interest Payment|||||||||||||||||Principal Pay
1 ||||||||||||||$215,920 |||||||||||||| $1,132.86 |||||||||||| $863.68 ||||||||||||||||||||| $269.18
2 |||||||||||||||$215650.82 |||||||||||" " |||||||||||||||||$862.60 |||||||||||||||||| $270.26
To find:
Interest Payment I=P(i)
Principal Payment Payment-Interest Payment
I copied these notes from a friend, but I do not know how to get the payment number ($1,132,.86) I was told to multiply the
mortgage by the interest to get it, but I did not recieve the correct answer
$1,132.86 is the CORRECT monthly payment, the 4.8% cpd monthly.
A = Amount borrowed (215920)
n = Number of months (360)
i = Interest rate per month (.004)
P = monthly Payment (?)
Formula:
P = Ai / [1 - 1/(1 + i)^n]
P = 215920(.004) / (1 - 1/1.004^360) = 1132.85743....
WHY are you trying to do this: homework?