Will is buying a house for $185,000. He is financing $165,000 and obtained a 30-year, fixed-rate mortgage with a 6.725% interest rate. How much are his monthly payments?

$506.25

$1,067.45

$1,196.83

$1,656.73

Question

Will is buying a house for $185,000. He is financing $165,000 and obtained a 30-year, fixed-rate mortgage with a 6.725% interest rate. How much are his monthly payments?

 $506.25

 $1,067.45

 $1,196.83

 $1,656.73

anonymous · Answer

i would really appreciate it if someone could solve this

jim_thompson5910 · Answer

P = L[c(1 + c)^n]/[(1 + c)^n - 1]



P = 165000[0.00560416666666667(1 + 0.00560416666666667)^360]/[(1 + 0.00560416666666667)^360 - 1]



P = 165000[0.00560416666666667(1.00560416666667)^360]/[(1.00560416666667)^360 - 1]



P = 165000[0.00560416666666667(7.47727057864027)]/[7.47727057864027 - 1]



P = 165000(0.0419038705344632)/(7.47727057864027 - 1)



P = 165000(0.0419038705344632)/(6.47727057864027)



P = 165000(0.0064693716320339)



P = 1067.44631928559


P = 1067.45


So his monthly payment is $1,067.45

anonymous · Answer

you rule

jim_thompson5910 · Answer

thank you, glad I could help