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