Question

9. Marshall and Mandy obtained a loan of $195, 000 to buy their home. The monthly mortgage payment is based on 25 years at 5% inter

month? Use the monthly mortgage payment table below.
-0.05
1 year
2 years
3 years
4 years
5 years
15 years
20 years
25 years
30 years
4%
0.0851499
0.0434249
0.0295240
0.0225791
0.0184165
0.0073969
0.0060598
0.0052874
0.0047742
5%
0.0856075
0.0438714
0.0299709
0.023093
0.0188712
0.0079079
0.0065996
0.0058459
0.0053682
6%
0.0960664
0.0443206
0.0304219
0.0234850
0.0193328
0.0084386
0.00716543
0.0064430
0.0059955
7%
0.0865267
0.0447726
0.0308771
0.0239462
0.0198012
0.0089883
0.0077530
0.0070678
0.0066530

Answer 1

Answer: Using the monthly mortgage payment table, we can find the monthly mortgage payment for a loan of $195,000 at 5% interest for 25 years.

From the table, we see that the monthly mortgage payment for 25 years at 5% interest is 0.0052874.

To calculate the monthly mortgage payment for the loan, we can use the following formula:

Monthly mortgage payment = Loan amount * Monthly interest rate / (1 - (1 + Monthly interest rate)^(-total number of months))

In this case, the loan amount is $195,000, the monthly interest rate is 0.0052874, and the total number of months is 25 years * 12 months per year = 300 months.

Plugging in these values, we get:

Monthly mortgage payment = 195000 * 0.0052874 / (1 - (1 + 0.0052874)^(-300))

Monthly mortgage payment = $1,128.99 (rounded to the nearest cent)

Therefore, Marshall and Mandy's monthly mortgage payment is $1,128.99.

Explanation: