Question

If the purchase price for a house is $445,500, what is the monthly payment if you put 5% down for a 30 year loan with a fixed rate of 6.25%? a.$2,740.19 b. $2,605.87 c.$1,314.84 d. $1,249.10 please select the best answer from the choices provided a b c d Answers 1. huyenthanh The monthly payment if we put 5% down for a 30-year loan with a fixed rate of 6.25% is (B)$2,605.87 (approx).

### What is a loan?

• A loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, or other entities in finance.
• The recipient (i.e., the borrower) incurs a debt and is typically required to pay interest on that debt until it is repaid, in addition to repaying the principal amount borrowed.
• The document evidencing the debt will typically include information such as the principal amount borrowed, the interest rate charged by the lender, and the date of repayment.
• A loan is the temporary reallocation of the subject assets between the lender and the borrower.
To find the monthly payment if we put 5% down for a 30-year loan with a fixed rate of 6.25%:
• The purchase price is = $445500 • 5% is down payment = 0.05 × 445500 = 22275 • Loan amount is = 445500 – 22275 = 423225 • The EMI formula is = [p × r (1+r)ⁿ]/[(1+r)ⁿ-1] • p = 423225 • r = 6.25/12/100=0.0052 • n = 30 × 12 = 360 • Putting the values in the formula we get: • [423225 × 0.0052 × (1.0052)³⁶⁰]/[(1.0052)³⁶⁰-1] • =$2603.17
Therefore, the monthly payment if we put 5% down for a 30-year loan with a fixed rate of 6.25% is (B) $2,605.87 (approx). Know more about loans here: #SPJ4 The correct question is given below: If the purchase price for a house is$445,500, what is the monthly payment if you put 5% down for a 30-year loan with a fixed rate of 6.25%?
a. $2,740.19 b.$2,605.87
c. $1,314.84 d.$1,249.10