Answer:
Her monthly principal payment is D: $579.81 and monthly interest payment is 0.4375.
Step-by-step explanation:
Ok, in order to calculate the monthly principal and interest payment, we can use this relatively simple equation. The equation is:
[tex]M=P\frac{r(1+r)^{n} }{((1+r)^{n}-1) }[/tex]
Where variables represent the following:
M is your monthly payment.
P is your principal.
r is your monthly interest rate, calculated by dividing your annual interest rate by 12.
n is your number of payments (the number of months you will be paying the loan throughout the 30 years)
Then, in this case:
M=?
P=$105,000
5.25%=5.25/100=0.0525, then [tex]r=\frac{0.0525}{12} =0.004375[/tex]
[tex]n=12*30=360[/tex]
So, [tex]M=105,000\frac{0.004375(1+(0.004375))^{360} }{((1+(0.004375))^{360}-1)}[/tex] $
Solving this,
[tex]M=105,000\frac{0.004375(1.004375))^{360} }{((1.004375))^{360}-1)}[/tex] $
[tex]M=105,000\frac{0.004375(4.8141) }{((4.8141))-1)}[/tex] $
[tex]M=105,000\frac{0.02106 }{3.8142}[/tex] $
[tex]M=105,000(0.005522)/tex] $
[tex]M=579.81[/tex] $
Her monthly principal payment is $579.81.
