Question

Calculate the monthly payment needed to pay off a $175,000 loan at 3.25% yearly interest over a 30 year period. Use the formula below. Round

your answer to the nearest dollar. Be sure to show all of your work.

Answer 1

The value is
`E = \$ 1310.8`

Explanation:

From the question we are told that

The principle is
`P = \$ 175,000`

The rate is
`R = 0.0325`

The period is
`t = 30 \ years`

Generally the formula to calculate the is mathematically represented as

`E = P * R * [((1 - R)^n)/( (1 + R)^n - 1) ]`

=>
`E = 175000 * 0.0325 * [((1 - 0.0325 )^(30))/( (1 + 0.0325)^(30) - 1) ]`

=>
`E = \$ 1310.8`