Question

In order to purchase a home, a family borrows $159,000 at 6.5% for 30 years. Use the table to find their monthly payment. Round the answer to the nearest cent.

a. $954.00                 c. $1,186.14
b. $1,006.47               d. $1,276.36

Answer 1

B

Explanation:

Answer 2

So, the given figure above shows us the monthly payments and interest in a $1000 of mortgage. So the interest rate monthly for 30 years is 6.33 dollars. So now, since it is stated that you are going to borrow $159,000, we will just have to multiply 6.33 by 159 and the result would be $1006.47. Therefore, the answer would be option B. Hope this answer helps.