Question

PLEASE HELP ME!!!!!

Answer 1

We have to use mortgage formula to find monthly payment here.

The formula is

$M = P ( \frac{r(1+r)^n}{((1+r)^n -1)} )$

Where, M = monthly payment, P = principal amount, r = rate of interest, n = number of payments.

Here given, P = 375,000,

r = 4.6% annually = $\frac{4.6}{12}$% monthly = 0.3833333% = 0.00383333.

As 15 years given and we know there are 12 months in a year.

So n = $(15)(12) =180$

Now by plugging in all the values in the formula we will get,

$M = 375000(\frac{(0.00383333)(1+0.00383333)^{180}}{((1+0.00383333)^{180}-1)} )$

By calculating them we will get, M = $2888 ( Approximating to the nearest whole number)

So we have got the required answer.

Option 4 is correct here.

Answer 2

$519,827/15yr=$34,655/yr
$34,655/12mo=$2887.9/mo

The closest amount for Sonora's monthly payment is $2,888.