Question

determine the monthly principal and interest payment for a 20-year mortgage when the amount financed is $265,000 and the annual percentage rate (apr) is 5.5%.

the monthly principal and interest payment is $
(round to the nearest cent as needed.)

Explanation:

Identify the given values

We are given the following parameters for the mortgage:

• Amount financed: \(\$265,000\)
• Term of the mortgage: \(20\) years
• Annual percentage rate (APR): \(5.5\%\)

Locate the table factor

Using the Mortgage Payment Table knowledge point

$$ \text{Factor for } 5.5\% \text{ and } 20 \text{ years} = \$6.87887 $$

Calculate the monthly payment

Using the Mortgage Payment Table knowledge point

$$
LATEXBLOCK0
$$

Round to the nearest cent

Using the Mortgage Payment Table knowledge point

$$ \text{Monthly Payment} \approx \$1822.90 $$

Answer:

Determine the monthly principal and interest payment for a 20-year mortgage when the amount financed is $265,000 and the annual percentage rate (APR) is 5.5%.

The monthly principal and interest payment is $<blank>1822.90</blank>.