Harold Hawkins bought a home for $320,000. He made a down payment of $45,000; the balance will be paid off over 30 years at a 6.775% rate of interest. How much will Harold's monthly payments be? Round off to the nearest $1.

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To calculate the monthly payment, use the formula for a fixed-rate mortgage: M = P[r(1+r)^n]/[(1+r)^n – 1], where P is the loan principal ($320,000 - $45,000 = $275,000), r is the monthly interest rate (6.775% annual rate / 12 months = 0.0056479), and n is the number of payments (30 years * 12 months = 360). Plugging in these values gives a monthly payment of approximately $1,788.

Harold Hawkins Bought a Home for $320,000