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In order to purchase a home, a family borrows $159,000 at 6.5% for 30 years. Use the table to find their monthly payment. Round the answer to the nearest cent.
A 5-column table with 4 rows titled Monthly Payments per 1000 dollars of mortgage. Column 1 is labeled Interest Rate (percent) with entries 5, 5.5, 6, 6.5. Column 2 is labeled 10 Years with entries 10.61, 10.86, 11.11, 11.36. Column 3 is labeled 20 years with entries 6.60, 6.88, 7.17, 7.46. Column 4 is labeled 30 years with entries 5.37, 5.68, 6.00, 6.33. Column 5 is labeled 40 years with entries 4.83, 5.16, 5.51, 5.86.
a.
$954.00
c.
$1,186.14
b.
$1,006.47
d.
$1,276.36



Please select the best answer from the choices provided


A
B
C
D



Answer :

sqdancefan

Answer:

  b. $1,006.47

Step-by-step explanation:

You want the monthly payment on a 30-year loan of $159,000 at 6.5%.

Table

The row for an interest rate of 6.5% is the last row of the table.

The column for a 30-year loan is Column 4.

The value in the last row of column 4 is 6.33, which means the payment is 6.33 times the loan value in thousands.

Payment

The loan is for 159 thousands of dollars, so the monthly payment is ...

  $159 × 6.33 = $1006.47

The monthly payment is $1006.47, choice b.

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