Answer:
$1,369.25
Step-by-step explanation:
Mr. and Mrs. Wong purchased their new house for $350,000.
They made a down payment of 20%
Down payment = 20% of 350000
= $70,000
Loan amount, P = $350,000 - $70,000
= $280,000
Rate of interest, r = 4.2% or 0.042
Time, t = 30 years
Number of period, n = 12 ( monthly )
Formula: [tex]E=\dfrac{P\cdot \frac{r}{n}}{1-(1+\frac{r}{n})^{-n\cdot t}}[/tex]
Substitute the values into formula
[tex]E=\dfrac{280000\cdot \frac{0.042}{12}}{1-(1+\frac{0.042}{12})^{-12\cdot 30}}[/tex]
E = $1,369.25
Hence, The monthly payment for their mortgage will be $1,369.25
