Answered

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Ethan is looking to take out a mortgage for $620,000 from a bank offering an annual interest rate of 4.5%, compounded monthly. Using the formula below, determine his monthly payment, to the nearest dollar, if the loan is taken over 25 years.

Sagot :

ajinems

His monthly payment to the nearest dollar of the loan taken over 25 years = $4,391.67

Calculation of monthly payment

The mortgage capital = $620,000

The rate of payment of interest= 4.5%

The period for the payment = 25 years.

Simple interest

= p×T×R/100

= $620,000 × 25 × 4.5/100

= 69750000/100

= $697,500

Therefore the total amount of money that will be generated = $620,000 + $697,500 = $1,317,500

Therefore the monthly payment,

= $1,317,500/12×25

= $4,391.67

Learn more about simple interest here:

https://brainly.com/question/20690803

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