Respuesta :
Monthly payment is $1082.84.
Solution:
Given data:
Principal = $195000
Rate per year = [tex]5.3\% =\frac{5.3}{100}=0.053[/tex]
Rate per month = [tex]\frac{0.053}{12} =0.004416[/tex]
Time = 30 × 12 = 360 month
To find the monthly payment using formula:
[tex]$\text{Monthly payment}=P\times\frac{r(1+r)^n}{(1+r)^n-1}[/tex]
[tex]$=195000\times\frac{0.004416(1+0.004416)^{360}}{(1+0.004416)^{360}-1}[/tex]
[tex]$=195000\times\frac{0.004416(1.004416)^{360}}{(1.004416)^{360}-1}[/tex]
If you simplify this using calculator, we get
[tex]=1082.84[/tex]
Monthly payment = $1082.84
Option C is the correct answer.
Hence monthly payment is $1082.84.
