Answer:
Option C - $1,097.50
Step-by-step explanation:
Given : $175,000 financing and obtained a 30-year, fixed-rate mortgage with a 6.425% interest rate.
To find : The monthly payments
Solution : To find monthly payments the formula is
Monthly payment = Amount / Discount factor
Discount factor \(D=\frac{1-(1+i)^{-n}}{i}\)
Where, Amount(A)=$175,000 , Rate(r)= 6.425%=0.06425, Time = 30 year
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Time(in months) n=30 × 12= 360
Put value in D we get,
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Monthly payment @@MATH_TOKEN_8@@
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Approx. monthly payment = $1097.50
Therefore, Option C is correct - $1097.50
