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A mortgage broker is offering a 20-year $185,900 mortgage. The borrower makes monthly payments on a 4.2 percent APR interest

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Answer #1

Monthly mortage payment formula=loan amount*monthly interest*(1+monthly interest)^n/[((1+monthly interest)^n)-1]

n=total number of periods=12*20=240

monthly interest=4.2%/12=0.35%

Monthly mortage payment =185900*0.35%*((1+0.35%)^240)/[((1+0.35%)^240)-1]

=650.65*2.312972/1.312972

=1146.20

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