Hugh akston took out a 30 year mortgage with an ear of 5.9%. if hugh borrowed $300,000 to buy his home, then his monthly paym

Question

Usimov

1 month ago

8

Hugh akston took out a 30 year mortgage with an ear of 5.9%. if hugh borrowed $300,000 to buy his home, then his monthly paym

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2 answers:

soldi70 [3.6K] · Answer 1 · 2026-03-27T04:03:18+03:00

The formula for calculating the present value of an ordinary annuity is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
With the present value set at 300000
PMT is the amount for monthly payments?
R is the interest rate at 0.059
K indicates monthly compounding, which is 12 as payments are made monthly
N represents the time period of 30 years
To derive the formula for PMT
PMT=pv÷ [(1-(1+r/k)^(-kn))÷(r/k)]
PMT=300,000÷((1−(1+0.059÷12)^(
−12×30))÷(0.059÷12))
=1,779.41

Scilla [3.8K] · Answer 2 · 2026-03-27T04:02:08+03:00

Result:

Monthly payment = $1,779.41

Clarification:

A mortgage is a type of loan that is secured against a specific property, with payments made periodically over a set duration.

Below is the formula for determining Hugh's monthly payment

$\\P[\frac{r(1+r)^n}{((1+r)^n)-1)}]$

Definitions of the terms below

P = Amount of loan.

M = Monthly repayment of the mortgage.

r = Interest rate, which must be adjusted for monthly calculations. Thus monthly rate[5.9% expressed as a decimal] = $\frac{0.059}{12}$ = 0.004917
n = Count of payments, equating to the loan duration. Hence N = 30 years multiplied by 12 months = 360.

Applying this to the formula yields:

$\\300000 * \frac{0.004917(1+0.004917)^'360'}{(1+0.004917)^'360'}-1$

Which results in a monthly payment of $1779.41

Hugh akston took out a 30 year mortgage with an ear of​ 5.9%. if hugh borrowed​ $300,000 to buy his​ home, then his monthly paym

Hugh akston took out a 30 year mortgage with an ear of 5.9%. if hugh borrowed $300,000 to buy his home, then his monthly paym