You put 20% down on a home with a purchase price of $300,000. The down payment is thus $60,000, leaving a balance owed of $240,000
The bank will loan the remaining balance at 4.28% APR. You will make annual payments with a 20-year payment schedule. What is the annual annuity payment under this schedule?
A) $18,100.23
B) $22,625.29
C) $12,000.00
D) $33,785.23
Answer: A
Explanation: A) The bank will loan you $240,000 and this is the PV. The PVIFA using r = 4.28% and n = 20 is 13.2595. The annual payment = PMT = = = $18,100.23.
MODE = END
INPUT 20 4.28 -240,000 ? 0
KEY N I/Y PV PMT FV
CPT 18,100.23
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