Question

Marie is purchasing a $108,000 home with a 30 year ortgage at 5.25%. What is her monthly principal and interest payment

Answer 1

Answer: 596.38

Step-by-step explanation:

Answer 2

Answer:

Monthly interest rate is r=0,004375

Monthly principal c=590,625

Step-by-step explanation:

Monthly interest payment rate :

$r=\frac{5.25}{12}:100=0,0004375$

Now, we need to find monthly principal payment : $c=\frac{rP}{1-(1+r)^{-N}}$

Use this rule : $N=30*12=360$

P=108000

r=0,004375

$c=\frac{0.004375*108000}{1-(1+0.004375)^{-360}} =\frac{472.5}{0.8}=590,625$