Question

Any help would be greatly appreciated thank you

Answer 1

option-B

Explanation:

we can use formula

`PMI=P[(i(1+i)^n)/((1+i)^n-1)]`

where

PMI is monthly payment

P is amount invested

i is interest rate per period

n is total number of periods

APR=4.4%=0.044

`i=(0.044)/(12)=0.00366`

t=89-65=24 years

Since, there are 12 months in a year

so,

`n=12* 24=288`

P=1000000

now, we can plug values

`PMI=1000000[(0.00366(1+0.00366)^(288))/((1+0.00366)^(288)-1)]`

now, we can solve it

and we get

`PMI=5623.71097`

So,

The monthly payment is $5623.71097

Since, option-B is closer

So, option-B is answer