Final answer:
The monthly payment for a 30-year mortgage with an APR of 5.9% based on monthly compounding is approximately $882.17.
Step-by-step explanation:
To calculate the monthly payment for a 30-year mortgage with an APR of 5.9% based on monthly compounding, you can use the formula:
PMT = P [i(1 + i)^n] / [(1 + i)^n - 1]
where:
- PMT = monthly payment
- P = principal amount borrowed ($153,000)
- i = monthly interest rate (APR / 12)
- n = total number of monthly payments (30 years x 12)
Plugging in the values, we have:
PMT = 153000 [(0.059/12)(1 + 0.059/12)^(30*12)] / [(1 + 0.059/12)^(30*12) - 1]
After calculating the expression, the monthly payment comes out to be approximately $882.17.