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16 Question 6 Find the monthly payment for the loan. Finance $450,000 for an apartment complex with a 8.5% 30-year loan ​

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Answer:

The monthly payment for the loan is $3,308.10

Explanation:

To find the monthly payment for the loan, we can use the standard formula for a fixed-rate mortgage loan:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]

Where:

M = monthly payment

P = principal amount (the amount borrowed)

i = monthly interest rate (annual interest rate divided by 12)

n = total number of monthly payments (30 years * 12 months per year)

First, we need to calculate the monthly interest rate:

i = 8.5% / 12 = 0.00708333

Next, we can substitute the given values into the formula:

M = 450,000 [ 0.00708333(1 + 0.00708333)^360 ] / [ (1 + 0.00708333)^360 - 1]

Using a calculator, we can simplify this equation to find the monthly payment:

M = $3,308.10

Therefore, the monthly payment for the loan is $3,308.10

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