Answer:
Monthly Payment = Loan Amount x Interest Rate / (1 - (1 / (1 + Interest Rate)^(Number of Payments)
We will now plug in the given values and calculate the monthly payment:
Loan Amount = $291,439 Interest Rate = 4.692% (or 0.04692 as a decimal) Number of Payments = 20 years * 12 months/year = 240 months
Now, let’s calculate the monthly payment:
Monthly Payment = $291,439 * 0.04692 / (1 - (1 / (1 + 0.04692) ^(240)
Monthly Payment ≈ $1,396.43
So, the monthly payment on a home mortgage of $291,439 at 4.692% interest for 20 years is about $1,396.43.
