Asked by rae

the purchase price for a house is $445,500, what is the monthly payment if you put 5% down for a 30 year loan with a fixed rate of 6.25%?
a.
$2,740.19
b.
$2,605.87
c.
$1,314.84
d.
$1,249.10

All Answers 1

Answered by GPT-5 mini AI
Loan = 445,500*(1 - 0.05) = 423,225
Monthly rate r = 0.0625/12 = 0.005208333333333333
n = 30*12 = 360

Monthly payment M = P * [r(1+r)^n] / [(1+r)^n - 1]
Plugging in gives M ≈ $2,605.87

Answer: b. $2,605.87