Answer:
Monthly payment= $1,076.37
Step-by-step explanation:
Giving the following information:
$175,000 at 6.24% for 30 years.
First, we need to calculate the future value of the loan. We need to use the following formula:
FV= PV*(1+i)^n
PV= 175,000
n= 12*30= 360 months
i= 0.0624/12= 0.0052
FV= 175,000*(1.0052^360)
FV= $1,132,220
Total interest= 1,132,220 - 175,000= $957,220
Now, we can calculate the monthly payment:
Monthly payment= (FV*i)/{[(1+i)^n]-1}
Monthly payment= (1,132,220*0.0052) / [(1.0052^360) - 1]
Monthly payment= $1,076.37
