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Based on Exhibit 7-7, what would be the monthly mortgage payments for each of the following situations:

A $200,000 mortgage loan with a 30-year term and an annual interest rate of 4.5%. Use the information provided in Exhibit 7-7 to calculate the monthly payment.

User Clozach
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1 Answer

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Final answer:

To calculate the monthly mortgage payment for a $200,000 loan with a 30-year term and a 4.5% interest rate, one would typically use the amortizing loan formula. The formula considers the principal, monthly interest rate, and total number of payments. The exact answer would require Exhibit 7-7 or a mortgage calculator.

Step-by-step explanation:

To calculate the monthly mortgage payment for a $200,000 mortgage loan with a 30-year term at an annual interest rate of 4.5%, you can use the formula for an amortizing loan. Without the specific Exhibit 7-7, the exact formula or the use of a financial calculator or a mortgage payment table, it's not possible to give an exact number. But typically, the formula for a fixed-rate mortgage monthly payment (M) would be:

M = P [i(1+i)^n] / [(1+i)^n - 1]

Where:

  • P = principal loan amount
  • i = monthly interest rate (annual rate/12)
  • n = number of months (years*12)

Plugging the numbers into the formula for our case results in:

P = $200,000

i = 4.5% per annum / 12 months = 0.375% per month = 0.00375

n = 30 years * 12 months/year = 360 months

Using these values, you would calculate the monthly payment. However, to provide a complete answer, Exhibit 7-7 or a mortgage calculator would need to be employed, which we do not have access to in this context.

User MahdeTo
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