We are given
PV=$98000
r=6.25%=0.0625
t=30 years
n=12
now, we can use mortage formula for monthly payment
[tex] PMT=\frac{PV*(\frac{r}{n})}{[1-(1+\frac{r}{n})^{-n*t}]} [/tex]
now, we can plug our values
and we get
[tex] PMT=\frac{98000*(\frac{0.0625}{12})}{[1-(1+\frac{0.0625}{12})^{-12*30}]} [/tex]
now, we can simplify it
and we get
[tex] PMT=603.40286 [/tex]
so,
monthly payment is $603.40..........Answer
