Find the monthly house payment necessary to amortize the following loan.
-In order to purchase a home, a family borrows $\$ 177,000$ at $3.4 \%$ for $30 \mathrm{yr}$. What is their monthly payment? Round the answer to the nearest cent.
A) $\$ 501.50$
B) $\$ 1517.42$
C) $\$ 6162.65$
D) $\$ 784.96$

Question

Quizplus · Accepted Answer

The monthly payment can be calculated using the formula for a fixed-rate mortgage: $ M = P \frac{r(1+r)^n}{(1+r)^n-1} $, where $ P = 177,000 $, $ r = \frac{3.4}{100 \times 12} $, and $ n = 30 \times 12 $. Solving this gives approximately $\$ 784.96$.

Find the Monthly House Payment Necessary to Amortize the Following $177,000\$ 177,000$177,000

Find the Monthly House Payment Necessary to Amortize the Following $\$ 177,000$