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
Where, Amount(A)=$175,000 , Rate(r)= 6.425%=0.06425, Time = 30 year
Time(in months) n=30 × 12= 360
Put value in D we get,
Monthly payment
Approx. monthly payment = $1097.50
Therefore, Option C is correct - $1097.50