Question

ALGEBRA Farha Gadhia has applied for a $100,000 mortgage loanat an annual interest rate of 6%. The loan is for a period of 30 yearsand will be paid in equal monthly payments that include interest.Use the monthly payment formula to find the payment

Answer 1

Mortgage loan= P = $100,000

Rate= r = 6% and the rate interest is

`r=(6)/(100)=0.06`

For a period of 30 years, i.e

`n=12*30=360\text{ months}`

The formula to find monthly mortgage payment is