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S_A_V [24]
2 years ago
11

Ethan is looking to take out a mortgage for $620,000 from a bank offering an annual interest rate of 4.5%, compounded monthly. U

sing the formula below, determine his monthly payment, to the nearest dollar, if the loan is taken over 25 years.
Mathematics
1 answer:
Komok [63]2 years ago
6 0

His monthly payment to the nearest dollar of the loan taken over 25 years = $4,391.67

<h3>Calculation of monthly payment</h3>

The mortgage capital = $620,000

The rate of payment of interest= 4.5%

The period for the payment = 25 years.

Simple interest

= p×T×R/100

= $620,000 × 25 × 4.5/100

= 69750000/100

= $697,500

Therefore the total amount of money that will be generated = $620,000 + $697,500 = $1,317,500

Therefore the monthly payment,

= $1,317,500/12×25

= $4,391.67

Learn more about simple interest here:

brainly.com/question/20690803

#SPJ1

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Normally, there's a standard fare for each city, so for answering the question we picked three well-known cities for comparing the fares.

<u>1. New York City:</u> The initial charge is $ 2.50 plus $ 0.50 per 1/5 mile when traveling above 12 mph or per 60 seconds in slow traffic or when the vehicle is stopped. There are other surcharges for overnight, rush hour or congestion.

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