Delgado French
08/09/2023 · Senior High School
Pam purchased a property with a mortgage of \( \$ 528,260 \) at \( 6.8 \% \) annual interest. Find the monthly payment if the mortgage is amortize 30 years.
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Tutor-Verified Answer
Step-by-step Solution
We can use the formula for calculating the monthly payment on a mortgage:
$$
\text{Monthly Payment} = \frac{\text{Principal} \times \text{Monthly Interest Rate}}{1 - (1 + \text{Monthly Interest Rate})^{-\text{Total Number of Payments}}}
$$
where:
- Principal = $528,260
- Monthly Interest Rate = Annual Interest Rate / 12 = 0.068 / 12 = 0.00567
- Total Number of Payments = 30 years x 12 months/year = 360
Plugging in the values, we get:
$$
\text{Monthly Payment} = \frac{528260 \times 0.00567}{1 - (1 + 0.00567)^{-360}} \approx \boxed{\$3,422.34}
$$
Therefore, the monthly payment on the mortgage is approximately $3,422.34.
Quick Answer
The monthly payment on the mortgage is $3,422.34.
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