a house sells for $350,000 and an 8% down - payment is made. a mortgage is secured at 4% for 15 years. do…

a house sells for $350,000 and an 8% down - payment is made. a mortgage is secured at 4% for 15 years. do not round intermediate calculations. round your answers in (a)-(d) to two decimal places, if necessary. use the formula below as needed. $m=\frac{pcdot\frac{r}{n}}{1-(1 + \frac{r}{n})^{-nt}}$. part 1 of 4 (a) find the down payment. the down payment is $28,000. part 2 of 4 (b) find the amount of the mortgage. the amount of the mortgage is $322,000. part 3 of 4 (c) find the monthly payment. the monthly payment is $2376.87
Answer
Explanation:
Step1: Identify formula variables
$P = 322000$ (mortgage amount), $r=0.04$ (annual interest rate), $n = 12$ (monthly payments), $t = 15$ (years)
Step2: Substitute values into formula
$M=\frac{322000\times\frac{0.04}{12}}{1-(1 + \frac{0.04}{12})^{-12\times15}}$
Step3: Calculate denominator value
First, calculate $(1+\frac{0.04}{12})^{-12\times15}\approx0.55045$. Then $1-(1+\frac{0.04}{12})^{-12\times15}=1 - 0.55045=0.44955$
Step4: Calculate numerator value
$322000\times\frac{0.04}{12}\approx1073.33$
Step5: Calculate monthly payment
$M=\frac{1073.33}{0.44955}\approx2387.56$
Answer:
The monthly payment is $$2387.56$