Final answer:
To calculate the monthly payment for a home mortgage of $104,000 with a fixed APR of 4.1% for 30 years, you can use the formula: Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1). Plugging in the values, the monthly payment is approximately $495.70.
Step-by-step explanation:
To calculate the monthly payment for a home mortgage, we can use the formula:
Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
- P is the principal amount of the loan, in this case $104,000
- r is the monthly interest rate, calculated by dividing the annual interest rate (4.1%) by 12 (number of months in a year)
- n is the total number of monthly payments, calculated by multiplying the number of years (30) by 12
Let's calculate:
P = $104,000
r = 0.041 / 12 = 0.00341666667
n = 30 * 12 = 360
Plugging in these values:
Monthly Payment = 104,000 * (0.00341666667 * (1 + 0.00341666667)^360) / ((1 + 0.00341666667)^360 - 1)
Simplifying the calculation, the monthly payment is approximately $495.70.