You want to buy a house that costs $305,000. You will make a down payment equal to 10 percent of the price of the house and finance the remainder with a loan that has an interest rate of 5.57 percent compounded monthly. If the loan is for 20 years, what are your monthly mortgage payments

$1,899.12

Explanation:

We use the PMT formula that is shown in the attachment below:

Provided that

Present value = $305,000 - $30,500 = $274,500

Future value = $0

Rate of interest = 5.57% ÷ 12 = 0.46416666%

NPER = 12 months × 20 = 240 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $1,899.12

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