Find the monthly payment.


Mortgage amount Annual percentage rate

2. $146,800 5.25% 30 years

4. $113,400 5% 15 years

6. Find the interest paid the mortgage in exercise 2.

8. Find the total interest paid for the mortgage in exercise 4.

1 answer

P = (Po*r*t)/(1-(1+r)^-t)

2. Po = $146,800

r = (5.25%/12)/100% = 0.004375 = Monthly
% rate.

t = 30yrs. * 12mo./yr. = 360 Months.

Plug the above values into the given Eq
and get: P = $291,828.61

Monthly Payment = P/t

4. Same procedure as #2.

6. I = P-Po

8. I = P-Po