Question

I do not understand how to figure this out, every way I try doesn't even come close to any of the answers to pick from. help please

Answer 1

Answer:

option-D

Step-by-step explanation:

we can use formula

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

where

PMI is payment amount per period

P is initial principal

i is interest rate per period

n is total number of period

we are given

$P=900000$

APR=4.6%

$i=\frac{0.046}{12} =0.00383$

age from 65 to 90

so, t=90-65=25

we know that there are 12 months in a year

so,

$n=25\times 12=300$

now, we can plug values

$PMI=900000\frac{0.00383(1+0.00383)^{300}}{(1+0.00383)^{300}-1}$

now, we can simplify it

$PMI=5051.65939$

So, option-D is closer one

Answer 2

Answer:

Step-by-step explanation:

The answer is B