Respuesta :
Answer:
$14,028
Explanation:
To calculate the monthly payment Taylor will be required to pay, we use loan amortization formula stated as follows:
P = {A × [r(1 + r)^n]} ÷ {[(1+r)^n]-1} .................................... (1)
Where,
P = Monthly required payment = ?
A = Loan balance = Loan amount - Initial down payment
= $270,000 - $10,000 = $260,000
r = interest rate = 5% per year = 0.05 pear year
= (0.05 ÷ 12) per month = 0.0042 per year
n = number of payment period = 30 years
= (30 × 12) months = 360 months
Substituting values into equation (1), we have:
P = {2,600,000 × [0.0042(1 + 0.0042)^360]} ÷ {[(1+0.0042)^360] - 1}
= {2,600,000 × [0.0042(1.0042)^360]} ÷ {[(1.0042)^360] - 1}
= {2,600,000 × [0.0042 × 4.5215]} ÷ {4.5215 - 1}
= {2,600,000 × 0.0190} ÷ {3.5215}
= 49,400 ÷ 3.5215
P = $14,028
Therefore, Taylor will be required to make a monthly payment of $14,028 for 30 years.
