question is in the description

Question

Brian is going to buy his first home for $220,000 . He has to put $22,000 down. He needs to spread the payments over 180 months to get a 3.5% fixed annual interest. What is the best estimate of the monthly payment?

Answer 1

Use the forumula

Payment = P(r/n)(1+r/n)^nt/((1+r/n)^nt-1)

For this case nt = 180, r/n = 0.035/12 and P = 220,000 - 22000 = 198000

(1+r/n)¹⁸⁰ = 1.00292¹⁸⁰ = 1.6892

Payment = 198000(0.00292)(1.6892)/0.6892 ≈ $1415.46