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Calculating monthly mortgage payment

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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

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Solution Summary

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

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

Solution provided by:
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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