The monthly payment formula for a mortgage loan is:
M = P * (r/12) * (1 + r/12)^n / ((1 + r/12)^n - 1)
where:
M is the monthly payment
P is the principal amount (the amount of the loan)
r is the annual interest rate (as a decimal)
n is the total number of payments (number of years multiplied by 12)
In this case, we have:
P = $100,000
r = 0.06 (6% expressed as a decimal)
n = 30 years * 12 months/year = 360
Substituting these values into the formula, we get:
M = 100000 * (0.06/12) * (1 + 0.06/12)^360 / ((1 + 0.06/12)^360 - 1)
Simplifying this expression, we get:
M = $599.55 (rounded to the nearest cent)
Therefore, Farha's monthly mortgage payment will be $599.55, which includes both principal and interest.