Question

Violet obtained a 25 year fixed rate mortgage for $176,900 on a home that cost her $194,300. If the interest rate in the mortgage is 4.82%, how much are violet’s monthly payments

Answer 1

Answer:

  $1015.67

Step-by-step explanation:

The appropriate formula for the payment amount (A) for principal P and interest rate r over time period t years is ...

  A = P·(r/12)/(1 -(1 +r/12)^(-12t))

Filling in the given numbers, you get ...

  A = 176,900·(.0482/12)/(1 -(1 +0.0482/12)^-300) ≈ 1015.67

Violet's monthly payment for principal and interest is $1015.67.