Question

Brad decide Brad decides to purchase a $210,000 house. He wants to

finance the entire balance. He has received an APR of 3.2 % for a
20-year mortgage. What is Brad's monthly payment? Round your answer

Answer 1

Brad's monthly payment for a $210,000 mortgage with an APR of 3.2% for 20 years is approximately $1,158.73.

Step-by-step explanation:

To calculate Brad's monthly payment for a $210,000 mortgage with an APR of 3.2% for 20 years, we can use the formula for a fixed-rate mortgage. The formula is:

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

Where:

• P = Principal amount of the loan ($210,000)
• r = Monthly interest rate (APR / 12 / 100)
• n = Number of monthly payments (20 years * 12 months)

Substituting the values into the formula, we get:

Monthly Payment = $210,000 * (0.032 / 12) * (1 + (0.032 / 12))^240 / ((1 + (0.032 / 12))^240 - 1)

Simplifying the equation gives us:

Monthly Payment ≈ $1,158.73 (rounded to the nearest cent)