Answer: 477.42
Step-by-step explanation:
To find the monthly payments on a mortgage loan, we can use the formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
M = monthly payment
P = principal, which is the amount of the loan
i = monthly interest rate, which is the annual interest rate divided by 12
n = total number of months (30 years * 12 months = 360)
Using the given values:
P = $100,000
i = 4% / 12 = 0.0033333 (monthly interest rate)
n = 360
M = 100000 [ 0.0033333(1 + 0.0033333)^360 ] / [ (1 + 0.0033333)^360 – 1]
M ≈ $477.42
Therefore, the monthly payments on the mortgage loan would be approximately $477.42.