Question

Calculate the monthly payments for a home mortgage of $98,000 with a fixed APR of 6.25% for 30 years.

Answer 1

We are given

PV=$98000

r=6.25%=0.0625

t=30 years

n=12

now, we can use mortage formula for monthly payment

`PMT=(PV*((r)/(n)))/([1-(1+(r)/(n))^(-n*t)])`

now, we can plug our values

and we get

`PMT=(98000*((0.0625)/(12)))/([1-(1+(0.0625)/(12))^(-12*30)])`

now, we can simplify it

and we get

`PMT=603.40286`

so,

monthly payment is $603.40..........Answer