John bought a new house. He made a $5,500 down payment and financed the rest, $220,000, through his credit union. The credit union charged him 10% per year compounded monthly for 20 years. How much were his monthly payments?

Total Amount: $ 1,612,176.2, after 1st month he is supposed to pay $221833.3, after 2nd month his amount becomes $223681.94

Explanation:

Amount=P (1+r/n) ^nt

P: principal

r: interest rate

n: number of compoundings

t: number of years

A = 220,000 * (1+0.1/12) ^ (12*20)

A = $ 1,612,176.2

After 1st Month

A = P + P*r*t

A = 220000 + 220000*0.1*1/12

A = $ 221833.33

For 2nd month, P = 221833.33

A = 221833.3+221833.3*0.1*1/12

A=$ 223,681.94