Find the monthly house payment necessary to amortize the following loan.
-In order to purchase a home, a family borrows $\$ 184,000$ at $3.2 \%$ for $30 \mathrm{yr}$. What is their monthly payment? Round the answer to the nearest cent.
A) $\$ 6390.11$
B) $\$ 795.74$
C) $\$ 490.67$
D) $\$ 1558.87$

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula:$$PMT = \frac{P * r}{1 - (1 + r)^{-n}}$$where:* PMT is the monthly payment* P is the principal (the amount borrowed)* r is the monthly interest rate (the annual interest rate divided by 12)* n is the number of months (the number of years multiplied by 12)In this case, we have:* P = $184,000* r = 3.2% / 12 = 0.002667* n = 30 * 12 = 360Plugging these values into the formula, we get:$$PMT = \frac{184000 * 0.002667}{1 - (1 + 0.002667)^{-360}} = 795.74$$Therefore, the monthly payment is $795.74.

Find the Monthly House Payment Necessary to Amortize the Following $184,000\$ 184,000$184,000

Find the Monthly House Payment Necessary to Amortize the Following $\$ 184,000$