MHB A family buys a house and has to pay monthly

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A family borrows $40,000 at an 11% annual interest rate for 30 years, seeking to determine their monthly payment. The correct formula for calculating monthly payments is R = P(r/m) / [1-(1+r/m)^(-mt)], where R is the periodic payment, P is the loan amount, r is the interest rate in decimal form, m is the number of payments per year, and t is the loan term in years. After some confusion with the decimal conversion of the interest rate, the correct monthly payment was identified as approximately $380.93, corresponding to option C. The discussion highlights the importance of accurate calculations and understanding the formula components. Ultimately, the correct approach leads to the accurate monthly payment figure.
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In order to purchase a home, a family borrows \$40,000 at an annual interest rate of 11%, to be paid back over a 30 year period in equal monthly payments. What is their monthly payment?

A) \$366.67 B) \$12.12 C) \$380.93 D) \$392.05

Using the Periodic Deposit for Monthly Amortize Payments formula but can't get the right answer or I am using the wrong equation?
Here is the equation:

R = P(r/m) / [1-(1+r/m)^(-mt)]

R = the periodic deposit for ANNUITY/ Sinking fund/ Amoritization
P = Present Value or Deposit Value
r = interest rate in decimal
m = number of times interest is compounded per year
t = time

when I plug in the numbers my answer is \$130.50
 
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hmm...probably missing some parentheses.

- - - Updated - - -

AHHH see my mistake! keep on making 11% in decimal form to .011 silly me (Drunk)(Drunk)(Drunk)
 

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