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Math Asked by a SnapAndSolve user · about 9 hours ago

Sam and Maria are newlyweds and are purchasing their first home together. They will finance their $173,000...

10. Sam and Maria are newlyweds and are purchasing their first home together. They will finance their $173,000 purchase for 30 years at an interest rate of 7.25%. What is their monthly payment?
☐ $1,235.22
☐ $1,181.59
☐ $2,386.21
☐ $1,173.90

Answer

To find the monthly payment, we use the table provided for a 30-year term at 7.25% interest. The factor from the table is 6.82 per $1,000.

Monthly payment = (Loan amount / 1,000) * Factor

Monthly payment = (173,000 / 1,000) * 6.82 = 173 * 6.82 = 1,179.86

The closest option is $1,181.59.

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