Im currently working on present value in math. I was doing pretty good until we switched the equation around to do mortgage i understand how to get the values to fit into the equation. But this book is notorious for only giving half examples that i have issues following. Ive tried to solve it quite a few slightly different ways but im not entirely sure what they did to get the answer any help would be greatly appreciated
A house is purchased for $150 000 with a 10% down payment. What is the monthly mortgage payment on the house with a 5 year term at 6% compounded monthly amortized over 25 years?
Im having issue understanding the books solution im not sure if im doing it wrong or if im just consistently making a whole bunch of small mistakes (missing a decimal, multiplying exponents etc) and im just not noticing my mistakes but i am using the formula correctly but I always find that they don't show enough work for me to find my mistakes when im unable to come up with the answer provided
In order to help you, we really need to see at least one of your attempts, to show us where you are going wrong.
As I understand it, your difficulty is either in evaluating
to get the number 155.207, or perhaps in how they solved for R by dividing. Assuming the former, it is likely to be in how you used a calculator. Depending on the kind of calculator, you can either type in the expression more or less as it looks, something like
(1-(1+.005)^(-)300)/.005 = 155.20686
or calculate one step at a time:
1+.005 = 1.005
1.005^-300 = 0.22396568
1-0.22396568 = 0.77603432
0.77603432/.005 = 155.20686
If you didn't get those numbers at any point, show us what you did and what you got, as I just did, and we can diagnose your difficulty.
