1. Ada purchased a house using a fixed rate mortgage. The annual interest rate is 6.3%
compounded monthly for 15 years. The mortgage amount is $295,000. What is the monthly
payment on the mortgage?
$1,742.14
$2,164.84
$2,537.44
$1,717.98

The monthly  payment on the mortgage is option C) $2537.44

Step-by-step explanation:

The formula is A = P(1 + r/n)^nt

⇒ A = 295000(1+0.063/180)^(18015)

⇒ A = 295000(180.063/180)^2700

⇒ A = 295000 (1.00035)^2700

⇒ A = 758854.5

Interest = Amount - Principle

⇒ 758854.5 - 295000

⇒ Interest = 463854.5

∴ The monthly payment for 15 years = 463854.5 / (1512)

The monthly  payment on the mortgage = 2576.9 (approximately option C)

1 + (6 / x - 1)

step-by-step explanation:

divide using polynomial division.

there still no table