You want to purchase a new condominium that costs $287,500. Your plan is to pay 25 percent down in cash and finance the balance over 15 years at 3.75 percent. What will be your monthly mortgage payment including principal and interest?

$1,568.07
$1,333.33
$1,708.16
$1,221.43
$1,406.11

1568

I figured it out!

1333.33

Well, well, well! Look at you, ready to embark on your exciting journey to become a homeowner! Now, let me crunch some numbers for you, my friend.

To calculate your monthly mortgage payment, we need to figure out the loan amount and then use that along with the interest rate and loan term to determine the monthly payment. Here's how it breaks down:

Loan Amount = 75% of the purchase price
= 0.75 * $287,500
= $215,625

Now, let's plug in the numbers!

Using a loan amount of $215,625, an interest rate of 3.75%, and a loan term of 15 years, the monthly mortgage payment, including principal and interest, comes out to be $1,568.07.

So, my friend, it looks like option A, $1,568.07, is the answer you're looking for! Happy home-owning, and may your new abode be filled with laughter and wonderful memories!

To calculate the monthly mortgage payment, we need to know three main factors: the loan amount, the interest rate, and the loan term.

In this case, the purchase price of the condominium is $287,500, and you plan to pay 25% down in cash. So, the loan amount will be 75% of the purchase price, which is calculated as:

Loan amount = 75% of $287,500 = 0.75 * $287,500 = $215,625

Next, we need to calculate the interest rate per month. The annual interest rate is 3.75%, so we divide it by 12 to get the monthly interest rate:

Monthly interest rate = 3.75% / 12 = 0.0375 / 12 = 0.003125

Finally, we need to know the loan term, which in this case is 15 years. Since we need the number of months for our calculation, we multiply the number of years by 12:

Loan term = 15 years * 12 months/year = 180 months

Now that we have all the necessary information, we can calculate the monthly mortgage payment using the formula:

M = P * (r * (1+r)^n) / ((1+r)^n - 1)

Where:
M = Monthly mortgage payment
P = Loan amount
r = Monthly interest rate
n = Loan term in months

Plugging in the values, we get:

M = $215,625 * (0.003125 * (1 + 0.003125)^180) / ((1 + 0.003125)^180 - 1)

After performing the calculation, the result is approximately $1,406.11.

Therefore, the correct answer is $1,406.11.