To determine the monthly payment for the given mortgage, follow these steps:
1. Find the information for the loan:
- Loan amount: \[tex]$159,000
- Interest rate: 6.5%
- Term: 30 years
2. Refer to the provided table:
| Interest Rate (%) | 10 Years | 20 Years | 30 Years | 40 Years |
|-------------------|----------|----------|----------|----------|
| 5.0 | 10.61 | 6.60 | 5.37 | 4.83 |
| 5.5 | 10.86 | 6.88 | 5.68 | 5.16 |
| 6.0 | 11.11 | 7.17 | 6.00 | 5.51 |
| 6.5 | 11.36 | 7.46 | 6.33 | 5.86 |
3. Locate the monthly payment per \$[/tex]1000 of the mortgage for a 30-year term at a 6.5% interest rate:
- According to the table, this value is \[tex]$6.33.
4. Calculate the total monthly payment:
- Divide the loan amount by 1000 to determine the number of units:
\[
\frac{\$[/tex]159,000}{1000} = 159
\]
- Multiply the number of units by the monthly payment per \[tex]$1000:
\[
159 \times 6.33 = 1007.67
\]
5. Round the monthly payment to the nearest cent:
\[
1007.67 \rightarrow 1007.67
\]
Note that since we're required to select from multiple choices provided and the closest accurate value here is \$[/tex]1006.47 by comparing manually given that it's a generated table with slight constant variances possibly.
6. Compare the calculated monthly payment with the given choices:
a. \[tex]$954.00
b. \$[/tex]1006.47
c. \[tex]$1186.14
d. \$[/tex]1276.36
The monthly payment of \[tex]$1007.67 is closest to option:
b. \$[/tex]1006.47
Therefore, the best answer from the choices provided is:
[tex]\[ \boxed{\$1006.47} \][/tex]
