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 @@MATH_TOKEN_0@@
Where, Amount(A)=$185,000 , Rate(r)= 6.525%=0.06525, Time(t)=30 year
\(i=\frac{0.06525}{12}=0.0054375\)
Time (in months)n=30 × 12 = 360
Put value in D we get,
\(D=\frac{1-(1+i)^{-n}}{i}\)
\(D=\frac{1-(1+0.0054375)^{-360}}{0.0054375}\)
\(D=157.800128448\)
Monthly payment \(M=\frac{A}{D}\)
\(M=\frac{185000}{157.800128448}\)
\(M=117.23691344\)
Therefore, monthly payment = $117.24
