The monthly payment on the mortgage is option C) $2537.44
Step-by-step explanation:
- Principal (P): $
295,000
- Rate (r): 6.3% = 0.063
- Number of times compounded (n): 12months[tex]\times[/tex]15 years = 180
- Number of years = 15
The formula is A = P(1 + r/n)^nt
⇒ A = 295000(1+0.063/180)^(180[tex]\times[/tex]15)
⇒ A = 295000(180.063/180)^2700
⇒ A = 295000 (1.00035)^2700
⇒ A = 758854.5
Interest = Amount - Principle
⇒ 758854.5 - 295000
⇒ Interest = 463854.5
∴ The monthly payment for 15 years = 463854.5 / (15[tex]\times[/tex]12)
The monthly payment on the mortgage = 2576.9 (approximately option C)
