Given:
loan amount - $204,000
interest rate per annum - 4.5%
4.5% / 12 months = 0.375% per month
3/27 - 3 years to pay, 27 years amortization
27 years * 12 months = 324 months
Using the attached formula to compute for the monthly amortization:
A = 204,000 * [0.00375(1+0.00375)³²⁴] / [(1+0.00375)³²⁴ - 1]
A = 1,088.79
Keep in mind that there are slight differences in figures due to the decimal places used.
FV = 204,000(1+0.00375)³⁶ - 1,088.79 {[(1+0.00375)³⁶ - 1] / 0.00375}
FV = 233,426.56 - 41,885.72
FV = 191,540.84
The closest to my answer is Choice B. B. $190,245.98