Question

Ashley Harrison takes out a $100,000 mortgage. The total amount of interest for 30 years is $90,000. What is the payment per month? Monthly Payment = $_____ 277.78 527.78 3,000.00 3,333.33

Answer 1

Option B- Monthly payment = $527.78

Explanation:

Given : Ashley Harrison takes out a $100,000 mortgage. The total amount of interest for 30 years is $90,000.

To find : What is the payment per month?

Solution : Ashley Harrison takes out a $100,000 mortgage. Amount for 30 years $90,000.

Since the total paid for 30 years is :

`100000 + 90000 = 190000`

The monthly payment time is 30 years

In months,
`n= 12*30 = 360`

`\text{Monthly payment}=\frac{\text{Total amount}}{\text{n}}`

`\text{Monthly payment}=(190000)/(360)=527.78`

Therefore, Monthly payment = $527.78

Hence, Option B is correct.

Answer 2

Ashley Harrison's payment per month is $527.78