Consider a mortgage of $175,000 that is to be repaid over 360 months. If the annual percentage rate on this mortgage is 4%, the monthly mortgage payments are closest to:

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The monthly mortgage payment can be calculated using the formula for a fixed-rate mortgage, which is P = [r*PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate (annual rate divided by 12), PV is the present value or loan amount ($175,000), and n is the total number of payments (360). With an annual interest rate of 4%, the monthly interest rate is 4%/12 = 0.003333. Plugging these values into the formula gives a monthly payment of approximately $835.48.

Consider a Mortgage of $175,000 That Is to Be Repaid