9 Monthly mortgage payments can be found using the formula below, where $ M $ is the monthly payment, $ P $ is the amount borrowed, $ r $ is the annual interest rate, and $ n $ is the total number of monthly payments.
\[
M=\frac{P\left(\frac{r}{12}\right)\left(1+\frac{r}{12}\right)^{n}}{\left(1+\frac{r}{12}\right)^{n}-1}
\]
If Adam takes out a 15-year mortgage, borrowing $ \$ 240,000 $ at an annual interest rate of $ 4.5 \% $, his monthly payment will be
(1) $ \$ 1379.09 $
(3) $ \$ 1835.98 $
(2) $ \$ 1604.80 $
(4) $ \$ 9011.94 $

Answer

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Answer

M = \$ 1835.9848

Steps

Step 1 ：P = $240,000

Step 2 ：r = 0.045

Step 3 ：n = 15 \times 12 = 180

Step 4 ：M = \frac{240000\left(\frac{0.045}{12}\right)\left(1+\frac{0.045}{12}\right)^{180}}{\left(1+\frac{0.045}{12}\right)^{180}-1}

Step 5 ：M = \$ 1835.9848