Hugh akston took out a 30 year mortgage with an ear of 5.9%. if hugh borrowed $300,000 to buy his home, then his monthly payment will be closest to:

The formula of the present value of an annuity ordinary is

Pv=pmt [ (1 - (1+r/k) ^ (-kn)) : (r/k) ]

Pv present value 300000

PMT monthly payment?

R interest rate 0.059

K compounded monthly 12 because the payments are monthly

N time 30 years

Solve the formula for PMT

PMT=pv: [ (1 - (1+r/k) ^ (-kn)) : (r/k) ]

PMT=300,000: ((1 - (1+0.059:12) ^ (

-12*30)) : (0.059:12))

=1,779.41