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

B..............................

Answer 2

Option B is the answer.

Explanation:

The formula for EMI is :

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

Here p = 162000

r =
`5.15/12/100=0.004292`

n =
`30*12=360`

Now putting the values in the formula we get,

`(162000* 0.004292* (1+0.004292)^(360) )/((1+0.004292)^(360) -1)`

`(162000* 0.004292* (1.004292)^(360) )/((1.004292)^(360) -1)`

= $884.60 close to option B.

So, option B is the answer.