Mandy obtains a $155,000 20/6 balloon mortgage with a rate of 4.25%. What will her monthly payments be? (2 points)

Question

justus · Answer

The formula for fixed monthly mortgage repayment formula is

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

justus · Answer

A is the payment amount per month, R is the interest rate is 4.25 %, N is number of months which is 240 months, P is mortgage value which is $155,000.

justus · Answer

A= (0.0425)(155000) $$\frac{ 0.0425(1+0.0425)^240 }{ (1+0.0425)^240-2 }$$

justus · Answer

This will now be $279.98.

justus · Answer

Hope this helps you out.