FinancingInterest_and_payment_calculationsHARD
A borrower takes a $100,000 fixed-rate mortgage for 30 years at 4% interest. Using the standard amortization formula and rounding to the nearest dollar, what is the monthly principal-and-interest payment?
Correct Answer
A) $477
Using the standard amortization formula with principal of $100,000, monthly rate of 4% ÷ 12, and 360 monthly payments gives a monthly principal-and-interest payment of about $477. Rounded to the nearest whole dollar, the payment is $477.
Answer Options
A
$477B
$438C
$458D
$398Why This Is the Correct Answer
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Related Topics & Key Terms
Key Terms:
monthly_paymentamortization_formulafixed_rate_mortgageprincipal_and_interest
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