Answer:
B
Step-by-step explanation:
The amortization period in months is:
30 years * 12 = 360 months
The monthly interest rate would be 5.25%/12 = 0.004375
The payment for monthly mortgage formula would be:
[tex]E=\frac{C*r}{1-(1+r)^{-n}}[/tex]
Where
E is the monthly mortgage payment
C is the cost of mortgage, cost is $150,000
r is the monthly rate of interest, which is 0.004375
n is the period, in months, which is 360
Substituting, we get our answer:
[tex]E=\frac{C*r}{1-(1+r)^{-n}}\\E=\frac{150,000*0.004375}{1-(1+0.004375)^{-360}}\\E=\frac{656.25}{1-(1.004375)^{-360}}\\E=\frac{656.25}{0.7923}\\E=828.31[/tex]
So, the correct answer is B
