Awoman buys a house for a $32. she pays $4 down and takes out a mortgage at 5.7% for 20 years on the balance. find her monthly payment and the total amount of interest she will pay. the woman will make payments of $ nothing.

Explanation:

For this case the total payment is $320000, and she pays $40000 so the remain amount to pay would be:

$320000-40000=$ 280000

For this case we assume that the annual interest rate is APR=5.7% =0.057 on fraction.

The total number of years are 20. For this case n represent the number of payments per year and since we have monthly payments then n =12.

In order to find the PMT we can use the following formula:

On the last expression the APR needs to be on fraction and P represent the principal amount, for this case P = $280000. So if we replace we got:

And we can verify this using the following excel function: "=PMT(0.057/12,12*20,-280000)"

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