It’s a proof… some are done in two steps
1 answer:
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The value of the Financing loan is $185,500 . The Rate per month is 5.125%.
We will use the formula
Where PV is the Present Value of financing, which is $185,500
PMT=Payment every month, which is to be found.
r=interest rate=5.125%
n=number of months in 30 years=12\times 30=360
Therefore,
Therefore Molly's monthly payments are $1010.02.
Thus Option A is the correct option.