$698.94
Step-by-step explanation:
M = P [r (1 + r) ∧n / ( (1 + r) ∧n) - 1) ]
P = the principal loan amount = $150,000
Annual percentage rate = 3.8%
r = monthly interest rate = 0.038 / 12 = 0.003166
Term in years = 30
n = number of payments over the loan’s lifetime monthly = 30 * 12 = 360
M = the total monthly mortgage payment
Using the formula,
M = 150,000 [0.003166 (1 + 0.003166)∧360 / ((1 + 0.003166)∧360) - 1]
M = 150,000 [(0.003166 * 3.120394) / (3.120394 - 1)]
M = 150,000 [0.009880 / 2.120394]
M = 150,000 * 0.004660 = $699 (rounded up value)
As per mortgage calculator we get the exact value
M = $698.94
