Question

Calculate the monthly payment for a home mortgage of $350,000 over 30 years with a 5% interest rate.

A.
$1,878.88

B.
$1,531.13

C.
$1,864.23

D.
$1,264.32

need the answer in less than 10 mins

Answer 1

The monthly payment for the home mortgage is $1878.88.

How to calculate monthly mortgage payment.

Monthly mortgage payment is a kind of payment amount that is to be paid on a mortgage according to monthly basis in line with principal and interest.

It can be calculated by using the formula:

`PMT = (PVi(1+i)^n)/((1+i)^n-1)`

• PMT = monthly payment
• PV = present value
• i = monthly interest
• n = number of months

Replacing the values into the equation, we have:

`PMT = (350000 * (0.05)/(12)* (1 + (0.05)/(12))^(30* 12) )/((1+(0.05)/(12)) ^(30* 12)-1)`

PMT ≅ $1878.88