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Calculate monthly payment at 5% for a $350,000 home loan

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You decide to borrow $350000 to build a new home. The bank charges an interest rate of 5% compounded monthly. If you pay back the loan over 25 years, what will your monthly payments be (rounded to the nearest dollar)?

$1065
$3248
$2872
$2046

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Solution Summary

Calculate monthly payment at 5% for a $350,000 home loan

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We use the annual formula to solve this question.

The annuity formula states

Present value = ...

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