Alicia and Nick are buying a $725,000 home. They have been approved for a 5.25% APR, 30-year mortgage. They made a 20% down payment. What will be their monthly payment over 30 years? Google "mortgage calculator" and find the monthly payment using that tool.

R=An*i : [1 - (1+i) ^-n]

R=580,000*0.0525/12 : [1 - (1+0.0525/12) ^-360]

R=3,202.78

Monthly payments = $ 3,202.78

Explanation:

Given

Home Cost=725,000

downpayment = 20% of 725,000

An=725,000 - 0.2 * 725,000

An = 580,000

t=30 yrs

n=12 (monthly)

j=5.25% (interest rate)

--> i=j/m

i=0.0525/12

-->n=m*t

n=12*30

n=360

FInd monthly pmts (R) = ?

R=An*i : [1 - (1+i) ^-n]

R=580,000*0.0525/12 : [1 - (1+0.0525/12) ^-360]

R=3,202.78