Final answer:
The total amount paid is the sum of the borrowed amount and the interest. Dividing this by the number of months in 15 years provides the monthly payment. However, the calculated monthly payment does not match any of the provided options, suggesting an error in the given data or options.
Step-by-step explanation:
To find the monthly payment for a loan where $74,000 is borrowed and the total interest on the loan after 15 years is $107,997.17, we need to add the interest to the principal amount to get the total amount paid. The formula to do this is:
Total amount paid = Principal amount + Interest
In this case:
Total amount paid = $74,000 + $107,997.17
Total amount paid = $181,997.17
Since we want to find the monthly payment, we have to divide the total amount paid by the total number of months in 15 years (15 years × 12 months/year = 180 months).
Monthly payment = Total amount paid / Total number of months
Monthly payment = $181,997.17 / 180 months
Monthly payment = $1,011.10
However, none of the given options match this result. It is important to note that the monthly payment amount usually includes both principal and interest, and is often calculated using an amortization formula which factors in the interest rate. If the interest given is the total interest paid over the life of the loan, and not the annual interest rate, there might be an error in the question or the answer choices provided.