Explore BrainMass

Explore BrainMass

    Calculating monthly mortgage payment

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    You want to buy a house, and a mortgage company will lend you $150,000. The loan would be fully amortized over 15 years (180 months), and the nominal interest rate would be fixed at 7.75 percent, compounded monthly. What would be the monthly mortgage payment?

    a. $17,257.84
    b. $11,625.02
    c. $10,524.43
    d. $1,411.91
    e. $564.77

    © BrainMass Inc. brainmass.com June 4, 2020, 1:38 am ad1c9bdddf

    Solution Preview

    Present value of loan=$150,000
    Number of periods=n=15*12=180 ...

    Solution Summary

    This solution provides a detailed, step-by-step explanation of the given finance problem.