Question

You have just applied for a 30year 100000 mortgage at a rate of 10%.what must be annual payment be?​

Answer 1

Answer:

The correct answer is "$10,607.92".

Explanation:

Given:

Amount borrowed,

P = 100000

Interest rate,

r = 10%

or,

 = 0.1

Time,

= 30 years

Now,

The annual payment will be:

⇒ $A=P\times \frac{r(1+r)^n}{(1+r)^n-1}$

       $=100000\times \frac{0.1(1+0.1)^{30}}{(1+0.1)^{30}-1}$

       $=10,607.92$ ($)