Shelley purchased a home in maryland heights, mo, for $204,000. her down payment was 20% of the cash price, and she obtained a mortgage for 20 years at 7%. what's shelley's monthly payment?

To solve this we are going to use the loan payment formula: 
where
is the payment
is the present debt
is the interest rate in decimal form 
is the number of payments per year 
is the time in years 

Since she paid 20% of the value of the home, %=163200
Now, to convert the interest rate to decimal form, we are going to divide the rate by 100% . Since we are finding Shelly's monthly payment and a year has twelve months, . We also know that , so lets replace those values in our formula:




We can conclude that Shelly's monthly payment is $1265.29