Suppose you are considering borrowing $120,000 to finance your dream house. The annual percentage rate is 14.75% and payments are made monthly.

Suppose you are considering borrowing $120,000 to finance your dream house. The annual percentagerate is 14.75% and payments are made monthly. If the mortgage has a 30-year amortization schedule,what are the monthly payments?

Amount of loan (PV)Number of interest period (Nper)Monthly Rate of Interest (Rate)Hence, monthly installment (PMT) $120,000.003601.23%$1,493.37 The monthly payment to be made will be $1,493.37