Answer:
Monthly payment = $117.24
Step-by-step explanation:
Given : Weston is buying a house for $215,000. He is financing $185,000 and obtained a 30-year, fixed-rate mortgage with a 6.525% interest rate.
To find : The monthly payment
Solution : To find monthly payment the formula is
Monthly payment = Amount / Discount factor
Discount factor [tex]D=\frac{1-(1+i)^{-n}}{i}[/tex]
Where, Amount(A)=$185,000 , Rate(r)= 6.525%=0.06525, Time(t)=30 year
[tex]i=\frac{0.06525}{12}=0.0054375[/tex]
Time (in months)n=30 × 12 = 360
Put value in D we get,
[tex]D=\frac{1-(1+i)^{-n}}{i}[/tex]
[tex]D=\frac{1-(1+0.0054375)^{-360}}{0.0054375}[/tex]
[tex]D=157.800128448[/tex]
Monthly payment [tex]M=\frac{A}{D}[/tex]
[tex]M=\frac{185000}{157.800128448}[/tex]
[tex]M=117.23691344[/tex]
Therefore, monthly payment = $117.24
