The monthly payment for a fixed-rate mortgage of $125,000 at 4.5% compounded monthly for 30 years is $633.36.
The monthly payment can be determined using an online finance calculator that compounds the interest on the outstanding balance as follows:
N (# of periods) = 360 months (30 years x 12)
I/Y (Interest per year) = 4.5%
PV (Present Value) = $125,000
FV (Future Value) = $0
Results:
PMT (Monthly Payments) = $633.36
The sum of all periodic payments = $228,008.39
Total Interest = $103,008.39
Thus, we conclude that the monthly payment is $633.36.
Complete Question:
The original loan amount is 125,000 A fixed-rate mortgage at an interest rate of 4.5%/year compounded monthly, payable over 30 years in 360 equal monthly installments. What is the monthly payment?