Ask Question
18 October, 12:47

John's parents purchased their first home in the 1980s with a 30-year

mortgage at 17.5%. Their home was purchased for $125,000. What was their

monthly mortgage payment?

A. $1832.91

B. $1872.90

C. $1965.72

D. $1765.92

+5
Answers (1)
  1. 18 October, 14:12
    0
    Option A,$ 1,832.91 is correct

    Step-by-step explanation:

    The monthly payment can be computed using the below pmt formula i excel shown below:

    =pmt (rate, nper,-pv, fv)

    rate is the monthly rate on the mortgage which is 17.5%/12=0.014583333

    nper is the number of months of payment i. e 30*12=360

    pv is the amount of the loan which is $125,000

    fv is the total amount of repayment which is unknown

    =pmt (0.014583333,360,-125000,0) = $ 1,832.91

    The correct option is A,$ 1,832.91 which is the amount of money they need to pay back on the mortgage for 360 months
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “John's parents purchased their first home in the 1980s with a 30-year mortgage at 17.5%. Their home was purchased for $125,000. What was ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers