Chapter 13.CR, Problem 66E

### Algebra and Trigonometry (MindTap ...

4th Edition
James Stewart + 2 others
ISBN: 9781305071742

Chapter
Section

### Algebra and Trigonometry (MindTap ...

4th Edition
James Stewart + 2 others
ISBN: 9781305071742
Textbook Problem

# Mortgage What are the monthly payments on a mortgage of $60 , 000 at 9 % interest if the loan is to be repaid in ( a ) 30 years? ( b ) 15 years? To determine a) To find: Monthly payment if loan is to be repaid in 30 years. Explanation Given: Present value of the annuity is Ap=$60,000.

Interest rate is i=9%.

Loan is to be repaid in 30 years.

Approach:

Use the formula for installment buying.

Calculation:

Present value of the annuity, Ap=\$60,000

Monthly interest rate is,

i=9/12%=0.75%

Number of installments, n=30(12)=360

If R denotes the monthly installment then from the formula for installment buying we get

To determine

b)

To find:

Monthly payment if loan is to be repaid in 15 years.

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