Question

PLS HELP :-)

Answer 1

Answer:

Option C - $1,097.50            

Step-by-step explanation:

Given : $175,000 financing and obtained a 30-year, fixed-rate mortgage with a 6.425% interest rate.

To find : The monthly payments

Solution : To find monthly payments the formula is  

Monthly payment = Amount / Discount factor  

Discount factor $D=\frac{1-(1+i)^{-n}}{i}$

Where, Amount(A)=$175,000 , Rate(r)= 6.425%=0.06425, Time = 30 year

$i=\frac{0.06425}{12}=0.00535416666667$

Time(in months) n=30 × 12= 360

Put value in D we get,

$D=\frac{1-(1+i)^{-n}}{i}$

$D=\frac{1-(1+0.00535416666667)^{-360}}{0.00535416666667}$

$D=\frac{1-(1.00535416666667)^{-360}}{0.00535416666667}$

$D=\frac{1-0.146261631144}{0.00535416666667}$

$D=\frac{0.853738368856}{0.00535416666667}$

$D=159.453080564$  

Monthly payment   $M=\frac{A}{D}$

 $M=\frac{175,000}{159.453080564}$

 $M=1097.50153074$

Approx. monthly payment = $1097.50

Therefore, Option C is correct - $1097.50

Answer 2

Option b is the answer to your question