your home mortgage is 300000 for 30 years with a

Question

Your home mortgage is $300,000 for 30 years with a nominal annual rate of 7%. The monthly payment is most nearly:

Solution: n = 360 months interest = 7%-annual ÷ 12-months/year

          = 0.583% per month

 $300,000(A/P, 0.00583, 360) = Apply the equation:      

i (1+i)ⁿ/ (1+i)ⁿ -1

 = 0.006650339

 A = 300,000 x 0.006650339 = $1,995.10 per month