Question

Anissa is considering buying her first home. The house she is interested in buying is priced at $139,000. Anissa qualifies for a 30-year mortgage at 6.45%. What will be her monthly mortgage payment?

Answer 1

Answer:

A

Step-by-step explanation:

Answer 2

Answer:

The correct answer is option A.

Step-by-step explanation:

The EMI formula is ::

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

Here,

p = 139000

r = $6.45/12/100=0.005375$

n = $30*12=360$

Now, putting these values in formula we get,

$\frac{139000*0.005375*(1+0.005375)^{360} }{(1+0.005375)^{360}-1 }$

$\frac{139000*0.005375*(1.005375)^{360} }{(1.005375)^{360}-1 }$

= $874.01

Therefore, option A is the answer.