Chapter 12.6, Problem 41E

To determine

To find the monthly payment for the principal and interest on their mortgage be.

Answer to Problem 41E

  $A=\$18182.38$ , $CI=\$3,182.38$

Explanation of Solution

Given:

The annual interest rate is $8\%$ and a family decides to mortgage $\$15,000$ over $30$ years with the bank.

Calculation:

The monthly payment for the mortgage will be −

  $\begin{array}{l}A=p{\left(1+\frac{r}{100}\right)}^{nt}\\ A=15,000{\left(1+\frac{8}{100}\right)}^{\frac{30}{12}}\\ A=15,000{\left(1.08\right)}^{2.5}\\ A=\$18182.38\\ CI=A-P\\ CI=18182.38-15,000\\ CI=\$3,182.38\end{array}$