can someone help me with this math problem?

Question

United Bank offers a 15-year mortgage at an APR of 6.2%. Thalia wants to borrow $120,000. What would the monthly payment be from United Bank

Answer 1

Mikey, let's let P = principal amount, r = the monthly interest rate, n = the number of months, and M = the monthly payments.

 

Then, we have that M = P(1+r)ⁿ r / [(1+r)ⁿ-1].  Remember that r = .062/12, because we want the monthly rate.

 

So, we have that M = [120000(1 + .062/12)¹⁸⁰(.062/12)] / [(1 + .062/12)¹⁸⁰ - 1].

 

Plug all that into your calculator for your answer.