5. You have decided to purchase a home. Congratulations! The home is valued at $200,000 and you seek a mortgage in the amount of $150,000. If you can get a 6% mortgage for 30 years what would be your monthly payment (assume monthly compounding)? What is the formula for this question?
In this solution I have shown how to calculate equal monthly installments for home loan mortgage, given the cost of the house, loan amount, loan duration and interest rate. I have also provided the formula to calculate the same.