To find the monthly mortgage payment for a $175,000 house with a down payment of $18,000 and a 25-year mortgage at an annual interest rate of 8%, we can use the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
where M is the monthly mortgage payment, P is the principal (loan amount) which is $175,000 - $18,000 = $157,000 in this case, i is the monthly interest rate, and n is the total number of payments, which is 25 years x 12 months/year = 300 months.
To find the monthly interest rate, we divide the annual interest rate by 12:
i = 8% / 12 = 0.00666666667
Plugging in these values, we get:
M = $157,000 [ 0.00666666667(1 + 0.00666666667)^300 ] / [ (1 + 0.00666666667)^300 – 1 ]
Simplifying this expression using a calculator or spreadsheet software, we get:
M ≈ $1,222.11
Therefore, the monthly mortgage payment for a $175,000 house with a down payment of $18,000 and a 25-year mortgage at an annual interest rate of 8% is approximately $1,222.11.