Final answer:
The amount of their monthly payment for the 30-year loan is approximately $1048.20.
Step-by-step explanation:
To calculate the amount of the monthly payment for a 30-year loan, we can use the formula:
A = P(1 + r/n)^(nt) / (12t)
where:
- A is the monthly payment
- P is the principal loan amount ($100,000)
- r is the annual interest rate (9 3/4% or 0.0975)
- n is the number of times the interest is compounded per year (12 for monthly compounded interest)
- t is the loan term in years (30 years)
Using these values, we can plug them into the formula to calculate the monthly payment:
A = 100,000(1 + 0.0975/12)^(12*30) / (12*30)
After evaluating this expression, the amount of their monthly payment is approximately $1048.20.