Answer:
Option A- $1106.18.
Step-by-step explanation:
Given : Don is buying a home for $190,300. He is making a 30% down payment and financing the rest with a 15-year loan at 5.75% interest.
To find : What will his monthly mortgage payment be?
Solution :
There is a 30% down payment
So, Amount financing \(=190300-190300\times 30\%\)
\(= 190300-190300\times0.3\)
\(= 190300-57090=133210\)
Formula of monthly payment :
Monthly payment, \(M=\frac{\text{Amount}}{\text{Discount factor}}\)
Discount factor \(D=\frac{1-(1+i)^{-n}}{i}\)
Where, Amount = $133210
Rate r= 5.75%=0.0575
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Time = 15 years
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Now, put all the values we get,
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Monthly payment, @@MATH_TOKEN_13@@
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Therefore, Option A is correct.
The Monthly payment is $1106.18.
