Final answer:
A. $694.62. The monthly payment on a $130,000 30-year fixed-rate mortgage at a 5% interest rate is approximately $694.62.
Step-by-step explanation:
To find the monthly payments on a $130,000 30-year fixed-rate mortgage at a 5% interest rate, we can use the formula for the monthly payment on a mortgage. The formula is:
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 total number of monthly payments. For this question, P = $130,000, r = 5% / 100 / 12 = 0.004167, and n = 30 years * 12 months/year = 360 months.
Plugging in these values into the formula, we get:
Monthly Payment = $130,000 * 0.004167 * (1 + 0.004167)^360 / ((1 + 0.004167)^360 - 1)
Using a calculator, the approximate value of the monthly payment is $694.62.