Emma is considering buying her first home. The house she is interested in buying is priced at $141,000. Emma qualifies for a 30-year mortgage at 5.15%. What will her monthly mortgage payment be?

The formula of the present value of annuity ordinary is

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

Pv present value 141000

PMT monthly payment?

R interest rate 0.0515

K compounded monthly 12 because the payment is monthly

N time 30 years

We need to solve for pmt

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

PMT=141,000: ((1 - (1+0.0515:12) ^ (

-12*30)) : (0.0515:12))

=769.90 ... Answer