You are considering purchasing a new home. You will need to borrow $250,000 to purchase the home. A mortgage company offers you a 15 year fixed rate mortgage (180 months) at 9% APR (0.75% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to:
A) $2585
B) $660
C) $2535
D) $1390
C
Explanation: C) PV = 250000
I = 0.75
N = 180
FV = 0
Compute PMT = $2535.67
Business
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