Question

what is the monthly payment on a 15-year fixed-rate mortgage if the original balance is $235,000 and the rate is 4.9 percent?

Answer 1

The monthly payment on a 15-year fixed-rate mortgage with an original balance of $235,000 at 4.9% interest is calculated using the amortization formula, which incorporates principal, monthly interest rate, and total number of payments.

Step-by-step explanation:

The monthly payment on a 15-year fixed-rate mortgage with an original balance of $235,000 and an interest rate of 4.9% can be calculated using the formula for an amortizing loan. To calculate the monthly payment, we use the formula:

M = P [i(1+i)^n] / [(1+i)^n – 1]

where:
M = monthly payment
P = principal loan amount
i = monthly interest rate
n = number of payments (months)

First, convert the annual rate to the monthly rate by dividing by 12. Then, calculate the number of monthly payments by multiplying the number of years by 12. Using these values, we can plug them into the equation to calculate the monthly payment.

Upon performing these calculations, you would find the exact monthly payment amount required to repay the loan over the 15-year period.

Answer 2

To compute the monthly payment for a 15-year fixed-rate mortgage with an original balance of $235,000 and a rate of 4.9%, one must use the loan amortization formula, which entails complex calculations typically performed with a financial calculator or spreadsheet software.

Step-by-step explanation:

To calculate the monthly payment on a 15-year fixed-rate mortgage with an original balance of $235,000 and an interest rate of 4.9 percent, we would use the standard loan amortization formula which is as follows:

M = P[r(1+r)^n] / [(1+r)^n-1]

Where:

• M is the total monthly mortgage payment.
• P is the principal loan amount.
• r is the monthly interest rate (annual rate divided by 12 months).
• n is the number of payments (loan terms in years times 12 months).

Given that the interest rate is 4.9%, the monthly interest rate would be 4.9% divided by 12, or 0.004075. The number of payments for a 15-year mortgage would be 15 times 12, or 180 payments.

By substituting the values we get:

M = $235,000[0.004075(1+0.004075)^180] / [(1+0.004075)^180-1]

Calculations are complex and can be done using a financial calculator or financial functions in a spreadsheet program. The result will give you the monthly payment for the duration of the loan.