Calculate monthly mortgage payments on a $162,000 home, financed at 3.875% yearly interest compounded monthly for 360 months.

Question

A) $761.78

B) $799.61

C) $1,050.00

D) $423.85

Answer 1

P = L[c(1 + c)ⁿ]/[(1 + c)ⁿ - 1]

L = 162,000

c = 0.0032291666

n = 360

Substitute and calculate.