you have just purchased a home by borrowing$400,000

for 30-years at a fixed APR of3.87%

. What is the monthly mortgage payment?

(Hint: A mortgage is just an annuity where the borrowed amount is the present value of the annuity.

So, use the annuity formula, but solved for the cash flow in terms of the present value:

CF =PVR/k

1(1+R/k)

Tk)