Question

Calculate the monthly payment needed to pay off a $175,000 loan at 3.25% yearly interest over a 30 year period. Use the formula below. Round
your answer to the nearest dollar. Be sure to show all of your work.

Answer 1

Answer:

The value is $E = \ 1310.8$

Step-by-step explanation:

From the question we are told that

   The principle is $P = \ 175,000$

    The rate is  $R = 0.0325$

    The period is  $t = 30 \ years$

Generally the formula to calculate the  is mathematically represented as

       $E = P * R * [\frac{(1 - R)^n}{ (1 + R)^n - 1} ]$

=>    $E = 175000 * 0.0325 * [\frac{(1 - 0.0325 )^{30}}{ (1 + 0.0325)^{30} - 1} ]$

=>    $E = \ 1310.8$