Question

Marie is purchasing a $108,000 home with a 30 year ortgage at 5.25%. What is her monthly principal and interest payment

Answer 1

Answer: 596.38

Explanation:

Answer 2

Monthly interest rate is r=0,004375

Monthly principal c=590,625

Explanation:

Monthly interest payment rate :

`r=(5.25)/(12):100=0,0004375`

Now, we need to find monthly principal payment :
`c=(rP)/(1-(1+r)^(-N))`

Use this rule :
`N=30*12=360`

P=108000

r=0,004375

`c=(0.004375*108000)/(1-(1+0.004375)^(-360)) =(472.5)/(0.8)=590,625`