19.03.2023 - 22:29

You have just taken on a $280,000 mortgage financed for 15 years at an interest rate of 4.75%. What is your monthly payment?

You have just taken on a $280,000 mortgage financed for 15 years at an interest rate of 4.75%. What is your monthly payment?

Answers (1)
  • aNaStAsiYa666
    April 3, 2023 в 04:46

    Assuming the mortgage is a fixed-rate loan, the monthly payment can be calculated using the formula for the present value of an annuity, which is:

    P = A * (r / (1 - (1 + r)^(-n)))

    where: P = the monthly payment A = the amount borrowed (in this case, $280,000) r = the monthly interest rate (which is the annual interest rate divided by 12) = 4.75% / 12 = 0.00395833333 n = the total number of payments (which is the number of years multiplied by 12) = 15 * 12 = 180

    Plugging in the values, we get:

    P = $280,000 * (0.00395833333 / (1 - (1 + 0.00395833333)^(-180))) P = $2,114.71

    Therefore, the monthly payment for a $280,000 mortgage financed for 15 years at an interest rate of 4.75% is $2,114.71. This payment will remain fixed for the life of the loan as long as it is a fixed-rate loan.

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