Answer: Jadyn’s monthly mortgage payment is $812
Step-by-step explanation:
The cost of the house is $182,000.
The down payment made is $$40,000. The balance to be paid would be
182000 - 40000 = $142000
We would apply the periodic interest rate formula which is expressed as
P = a/[{(1+r)^n]-1}/{r(1+r)^n}]
Where
P represents the monthly payments.
a represents the amount of the loan
r represents the annual rate.
n represents number of monthly payments. Therefore
a = $142000
r = 0.00351/12 = 0.000293
n = 12 × 15 = 180
Therefore,
P = 142000/[{(1+0.000293)^180]-1}/{0.000293(1+0.000293)^180}]
142000/[{(1.000293)^180]-1}/{0.000293(1.000293)^180}]
P = 142000/{1.054 -1}/[0.000293(1.054)]
P = 142000/(0.054/0.0003088)
P = 142000/174.87
P = $812
