Question

PLEASE HELPPP The Sanchez family takes out a $200,000 loan for their fixed-rate, 30-year mortgage. The annual interest rate for the loan is 4%.What is their monthly payment?

Answer 1

In the question, we are given that the Sanchez family takes a loan of $200,000 for a fixed annual rate of 4%, 30-year mortgage.

Step-by-step explanation

We can find the monthly payment using the formula below;

`\text{Fixed monthly payment = }P*(r)/(12)*((1+(r)/(12))^n)/(\lbrack(1+(r)/(12))^n-1))`

Where the principal (p) = $200,000, the annual rate = 4% and number of payment installments = 30 x 12 =360

`\begin{gathered} \text{FMP = 200000 x }\frac{\text{4}}{12}\text{ x }\frac{\text{(1+}(0.04)/(12))^(360)}{\lbrack\text{(1+}(0.04)/(12))^(360)-1\rbrack} \\ \text{FMP = 200000 x }\frac{\text{4}}{12}\text{ x }\frac{\text{(301/300})^(360)}{\lbrack\text{(301/300})^(360)-1\rbrack} \\ \text{FMP = 200000 x }(4)/(12)\text{ x }\frac{\text{(301/300})^(360)}{\lbrack\text{(301/300})^(360)-1\rbrack} \\ \text{FMP}=954.83 \end{gathered}`

Answer: The monthly payment is $954.83