Find the monthly house payment necessary to amortize the following loan.
-In order to purchase a home, a family borrows $\$ 362,000$ at $2.3 \%$ for $15 \mathrm{yr}$. What is their monthly payment? Round the answer to the nearest cent.
A) $\$ 705.61$
B) $\$ 2905.36$
C) $\$ 2379.84$
D) $\$ 24,505.03$

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula:$$PMT = \frac{Pr}{1 - (1 + r)^{-nt}}$$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 in the loan term* t is the number of years in the loan termIn this case, we have:* P = $362,000* r = 2.3% / 12 = 0.001917* n = 15 * 12 = 180* t = 15Plugging these values into the formula, we get:$$PMT = \frac{362000}{1 - (1 + 0.001917)^{-180}} = 2379.84$$Therefore, the monthly payment is $2379.84, which is rounded to the nearest cent.

Find the Monthly House Payment Necessary to Amortize the Following $362,000\$ 362,000$362,000

Find the Monthly House Payment Necessary to Amortize the Following $\$ 362,000$