Question

Dora is purchasing a $162,000 home with a 30-year mortgage at 5.15%. What is her monthly principal and interest payment?

Answer 1

Answer:

Option B is the answer.

Step-by-step explanation:

The formula for EMI is :

$\frac{p\times r\times (1+r)^{n} }{(1+r)^{n} -1}$

Here p = 162000

r =$5.15/12/100=0.004292$

n = $30\times12=360$

Now putting the values in the formula we get,

$\frac{162000\times 0.004292\times (1+0.004292)^{360} }{(1+0.004292)^{360} -1}$

$\frac{162000\times 0.004292\times (1.004292)^{360} }{(1.004292)^{360} -1}$

= $884.60 close to option B.

So, option B is the answer.

Answer 2

B..............................