9514 1404 393
Answer:
$855.93
Explanation:
The amount borrowed will be ...
$150,000 - 0.15×150,000 = 0.85×150,000 = $127,500
The amortization formula is used to find the monthly loan payment:
A = P(r/12)/(1 -(1 +r/12)^(-12t))
where P is the principal borrowed, r is the annual interest rate, and t is the number of years. For the given values, we find the monthly loan payment to be ...
A = $127,500(0.0375/12)/(1 -(1 +0.0375/12)^(-12·20))
A = $755.93
The taxes are often paid as part of the monthly payment. The tax amount added to the loan payment will be ...
$1200/(12 months) = $100/month
So, the total monthly mortgage payment is ...
$755.93 +100.00 = $855.93