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Your real estate agent mentions that homes in your price range require a payment of $2200 per qaurter for 20 years at 1.2% interest per quarter. What is the size of the mortgage with these terms?

Answer :

Answer:

$112,734.03

Explanation:

For a quarterly payment 'A' of $2,200,

rate per quarter 'r' of 1.2%,

and number of quarters 'n' of (20years * 4 quarters/year) = 80 quarters.

The size of the mortgage =

[tex]\frac{A[1-(1+r)^{-n}] }{r} \\=\frac{2,200[1-(1.012)^{-80}] }{0.12}[/tex]

= $112,734.03.

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