Answer:
Explanation:
To calculate the monthly payment on a mortgage, we can use the formula for the monthly payment on a fixed-rate mortgage:
Monthly Payment = P * r * (1 + r)^n / [(1 + r)^n - 1]
Where:
P = Principal amount (loan amount)
r = Monthly interest rate
n = Number of monthly payments
Let's calculate the monthly payment for the given mortgage:
Principal amount (loan amount) = $577,000
Interest rate = 6% per year (0.06)
Number of monthly payments = 20 years * 12 months/year = 240 months
First, let's calculate the monthly interest rate:
Monthly interest rate = Annual interest rate / 12
= 0.06 / 12
= 0.005
Now, let's substitute the values into the formula:
Monthly Payment = $577,000 * 0.005 * (1 + 0.005)^240 / [(1 + 0.005)^240 - 1]
Calculating this expression will give us the monthly payment.
