Please give positive ratings so I can keep answering. It would help me a lot. Please comment if you have any query. Thanks! |
Answer 24 | ||
PMT= Monthly payments | PV*i | |
1-(1+i)^-n | ||
IF rate 5.75% | ||
PMT= | Monthly payment= ? | |
PV= | Loan amount= $ 185,400. | |
n= | no. of payments= 15*12=180 | |
i | 5.75%/12= 0.00479166666666667 | |
PMT | 185400*0.00479166666666667 | |
1-(1+0.00479166666666667)^-180 | ||
PMT | 888.375 | |
1-(1.00479166666666667)^-180 | ||
PMT | 888.375 | |
1-0.422975859570811 | ||
PMT | 888.375 | |
0.57702414 | ||
Monthly payments | 1,539.58 |
IF rate 6.25% | ||
PMT= | Monthly payment= ? | |
PV= | Loan amount= $ 185,400. | |
n= | no. of payments= 30*12=360 | |
i | 6.25%/12= 0.00520833333333333 | |
PMT | 185400*0.00520833333333333 | |
1-(1+0.00520833333333333)^-360 | ||
PMT | 965.625 | |
1-(1.00520833333333333)^-360 | ||
PMT | 965.625 | |
1-0.15410299895385 | ||
PMT | 965.625 | |
0.845897 | ||
Monthly payments | 1,141.54 |
Option C is closest to my calculation. |
So answer is option C, 6.25% fixed rate for 30 years, with payments of $ 1,142.06. |
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