Question

A $102,500 mortgage has monthly payments for 25 years, at 6.25% interest. How much are the monthly payments

Answer 1

$676.16

Step-by-step explanation:

We are required to find the monthly payments (PMT). This can be calculated using a financial calculator as follows :

PV = $102,500

P/yr = 12

i = 6.25%

N = 25 × 12 = 300

FV = $0

PMT = ?

Using a Financial Calculator to enter the values as above, the PMT will be $676.16. Therefore, he monthly payments on the mortgage are $676.16.