Question

Total payment of $180,241 at a fixed APR of 6.7 for 25 years.

a) 3,000
b) 5,000
c) 7,500
d) 10,000

Answer 1

To calculate the monthly payment for a loan, we can use the formula: monthly payment = P * r * (1+r)^n / ((1+r)^n - 1) where P is the principal amount, r is the monthly interest rate, and n is the number of monthly payments. None of the Option is correct.

Step-by-step explanation:

To calculate the monthly payment for a loan, we can use the formula: monthly payment = P * r * (1+r)^n / ((1+r)^n - 1) where P is the principal amount, r is the monthly interest rate, and n is the number of monthly payments.

In this case, the total payment is $180,241, the APR is 6.7%, and the loan term is 25 years. We need to convert the APR to a monthly interest rate by dividing it by 12 and multiplying by 0.01. So, the monthly interest rate is 0.067 / 12 = 0.0055833.

Substituting these values into the formula:

monthly payment = 180241 * 0.0055833 * (1+0.0055833)^(25*12) / ((1+0.0055833)^(25*12) - 1) = $1,198.46

So, the monthly payment is approximately $1,198.46.

In this case, the total payment is $180,241, the APR is 6.7%, and the loan term is 25 years. The monthly payment is approximately $1,198.46.