Question

Leila is considering buying her first home. The house she is interested in buying is priced at $125,000. Leila can put down a $20,000 payment, and she qualifies for a 30-year mortgage at 6%. What will her monthly mortgage payment be?

Answer 1

Answer:

$629.53

Step-by-step explanation:

A P E X

Answer 2

Answer:

* The monthly mortgage payment is $629.53 ⇒ answer C

Step-by-step explanation:

* Lets explain how to solve the problem

- Leila is considering buying her first home

- The house she is interested in buying is priced at $125,000

∴ She can put $20000 down  payment

* Lets find the balance to be paid off on mortgage

∴ The balance = 125000 - 20000 = 105000

- She qualifies for a 30-year mortgage at 6%

* Lets find the rule of the monthly payment

∵ $pmt=\frac{\frac{r}{n}[P(1+\frac{r}{n})^{tn}]}{(1+\frac{r}{n})^{tn}-1}$ , where  

- pmt is the monthly mortgage payment

- P = the initial amount  

- r = the annual interest rate (decimal)

- n = the number of times that interest is compounded per unit t

- t = the time the money is invested or borrowed for

∵ P = 105000

∵ r = 6/100 = 0.06

∵ n = 12

∵ t = 30

∴ $pmt=\frac{\frac{0.06}{12}[105000(1+\frac{0.06}{12})^{30(12)}}{(1+\frac{0.06}{12})^{30(12)}-1}$

∴  $pmt=\frac{0.005[105000(1.005)^{360}]}{(1.005)^{360}-1} =629.528$

* The monthly mortgage payment is $629.53