26-94 What is the monthly payment on the mortgage pass?through?

Question

Quizplus · Accepted Answer

To find the monthly payment, we need to use the formula:

Monthly Payment = (Loan Amount * Interest Rate/12) / (1 - (1 + Interest Rate/12)^(-Number of Payments))

Plugging in the values given in the problem, we get:

Monthly Payment = (100,000 * 0.08/12) / (1 - (1 + 0.08/12)^(-360))
Monthly Payment = 1,066.90

Rounding up to the nearest cent, the monthly payment on the mortgage pass-through is $1,066.90 or approximately $1,067. Therefore, the best choice is B.

26-94 What Is the Monthly Payment on the Mortgage Pass?through