QQuestionFinance
QuestionFinance
"Question: How much would the monthly payment be on a $400,000, 5% APR, 30 year mortgage? OA. $1,666.67 OB. $2,147.29 OC. $1,717.83 O D. $14,211.75 átv arch Verify Site Safety for Chrome 1 I Y T G MacBook Pro 6 I 7 N 8 Time Remaining: 01:19:49 M W K 14 Aut I O Ne : Next
How much would the monthly payment be on a $400,000, 5% APR, 30 year mortgage? OA. $1,666.67 OB. $2,147.29 OC. $1,717.83 O D. $14,211.75 átv arch Verify Site Safety for Chrome 1 I Y T G MacBook Pro 6 I 7 N 8"
11 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1:I'll solve this mortgage payment problem step by step using the standard mortgage payment formula.
Step 2:: Identify the Mortgage Parameters
- Total Number of Monthly Payments = $$30 \times 12 = 360
- Annual Interest Rate (r) = 0.05 (5%)
Step 3:: Use the Mortgage Payment Formula
- $$n$$ = Total Number of Payments
The standard mortgage payment formula is: Where:
Step 4:: Calculate Monthly Payment
M = 400,000 \times \frac{0.00416667(1+0.00416667)^{360}}{(1+0.00416667)^{360} - 1}
Step 5:: Compute the Calculation
After detailed calculation, the monthly payment is $$2,147.29
Final Answer
Key Insights: - This calculation includes both principal and interest - The payment remains constant over the 30 -year term - Early payments have more interest, later payments have more principal
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students