Suppose you are buying your first condo for $145,000,and you will make a $15,000 down payment.You have arranged to finance the remainder with a 30-year,monthly payment,amortized mortgage at a 6.5% nominal interest rate,with the first payment due in one month.What will your monthly payments be?
A)$741.57
B)$780.60
C)$821.69
D)$862.77
E)$905.91

Question

Quizplus · Accepted Answer

The loan amount is $130,000 ($145,000 - $15,000). Using the formula for monthly mortgage payments: M = P[r(1+r)^n]/[(1+r)^n – 1], where P = $130,000, r = 0.065/12, and n = 360, the monthly payment is approximately $821.69.

Suppose You Are Buying Your First Condo for $145,000,and You