Question

Determine the monthly principal and interest payment for a 15-year mortgage when the amount financed is $65,000 and the annual percentage rate (apr) is 6.0%?

Answer 1

To determine the monthly principal and interest payment for a 15-year mortgage, use the formula for calculating the monthly payment of a loan.

Step-by-step explanation:

To determine the monthly principal and interest payment for a 15-year mortgage, we need to use the formula for calculating the monthly payment of a loan. The formula is:

Monthly Payment = (P * r * (1 + r)^n) / ((1 + r)^n - 1)

Where:

• P is the amount financed ($65,000)
• r is the monthly interest rate (APR / 12 = 0.06 / 12 = 0.005)
• n is the total number of payments (15 years * 12 months per year = 180)

Substituting these values into the formula, we get:

Monthly Payment = (65000 * 0.005 * (1 + 0.005)^180) / ((1 + 0.005)^180 - 1)

Using a calculator or spreadsheet software, we can calculate the monthly payment to be approximately $511.11.