Question

Dora is purchasing a $162,000 home with a 30-year mortgage at 5.15%. What is her monthly principal and interest payment?

A. $829.23
B. $884.56
C. $807.81
D. $876.09

Answer 1

I think the answer b

Answer 2

B . $ 884.56

Explanation:

Since, monthly payment formula of a loan,

`P=(PV((r)/(12)))/(1-(1+(r)/(12))^(-12t))`

Where,

PV = principal value,

r = annual rate of interest,

t = number of years,

Here,

PV = $ 162,000,

r = 5.15% = 0.0515,

t = 30,

Hence, the monthly payment would be,

`P=(162000((0.0515)/(12)))/(1-(1+(0.0515)/(12))^(-360))`

`=\$ 884.562485827`

`\approx \$ 884.56`

OPTION B is correct.