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Sagot :
Using it's formula, it is found that their monthly payments for the mortgage loan will be of $515.45.
What is the monthly payment formula?
It is given by:
[tex]A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}[/tex]
In which:
- P is the initial amount.
- r is the interest rate.
- n is the number of payments.
In this problem, we have that the parameters are given as follows:
P = 80000, r = 0.06, n = 25 x 12 = 300.
Hence:
r/12 = 0.06/12 = 0.005.
Then, the monthly payment will be of:
[tex]A = P\frac{\frac{r}{12}\left(1 + \frac{r}{12}\right)^n}{\left(1 + \frac{r}{12}\right)^n - 1}[/tex]
[tex]A = 80000\frac{0.005(1.005)^{300}}{(1.005)^{300} - 1} = 515.45[/tex]
More can be learned about the monthly payments formula at https://brainly.com/question/22846480
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