Answer:
Explanation:
To calculate the monthly payment for a mortgage, we can use the formula for the fixed monthly payment on a mortgage with monthly compounding:
Monthly Payment = P * r * (1 + r)^n / ((1 + r)^n - 1)
where:
P = Principal amount (loan amount) = $132,986
r = Monthly interest rate = Annual interest rate / 12
n = Total number of monthly payments = 30 years * 12 months/year
Given:
Annual interest rate = 5.4%
Monthly interest rate (r) = 5.4% / 12 = 0.054 / 12 = 0.0045
Total number of monthly payments (n) = 30 * 12 = 360 months
Now, let's calculate the monthly payment:
Monthly Payment = $132,986 * 0.0045 * (1 + 0.0045)^360 / ((1 + 0.0045)^360 - 1)
Calculating the above expression will give us the monthly payment amount:
Monthly Payment ≈ $745.93 (rounded to two decimal places)
So, the monthly payment for the $132,986, 30-year mortgage at 5.4% compounded monthly is approximately $745.93.