Question

Anissa is considering buying her first home. The house she is interested in buying is priced at $139,000. Anissa qualifies for a 30-year mortgage at 6.45%. What will be her monthly mortgage payment?

Answer 1

A

Explanation:

Answer 2

The correct answer is option A.

Explanation:

The EMI formula is ::

`(p*r*(1+r)^(n) )/((1+r)^(n)-1 )`

Here,

p = 139000

r =
`6.45/12/100=0.005375`

n =
`30*12=360`

Now, putting these values in formula we get,

`(139000*0.005375*(1+0.005375)^(360) )/((1+0.005375)^(360)-1 )`

`(139000*0.005375*(1.005375)^(360) )/((1.005375)^(360)-1 )`

= $874.01

Therefore, option A is the answer.