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7 June, 16:59

Charles and Cynthia are purchasing a house. They obtained a 30-year, $535,000 mortgage at an annual interest rate of 3.6% compounded

monthly.

Calculate their monthly payment on the loan. Round your answer to the nearest cent.

M

P

() (1 + 5) 121

= (1 + £2) 12 + -

Their monthly payment will be $

+3
Answers (1)
  1. 7 June, 17:43
    0
    Answer:$4,369.17

    Step-by-step explanation:

    Compound interest (A) = P (1 + r/n) ^not

    A = compound interest

    P = principal

    r = rate

    n = number of times the interest is compounded in a year

    t = Time

    From our data,

    R = 3.6%

    T = 30 years

    P = $535000

    n = 12

    A = 535000 (1 + 0.036/12) ^12*30

    A = 535000*2.94

    A = $1,572,900

    In 30 years, we have (30*12) number of months = 360 months

    To get the amount paid monthly, we divide the compound interest by the total number of months they'll repay the loan

    Monthly payment = $1,572900/360 = $4,369.17
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