Respuesta :
This means that the monthly payment for a home loan of $250,000 at a 7% fixed rate for 25 years would be $1,517.30.
What is fixed rate?
A fixed rate is a type of interest rate that remains the same for the duration of an agreement or loan. This rate is determined at the start of the agreement and does not change, regardless of changes in the financial markets. Fixed rates are typically used in mortgage loans, auto loans, and other long-term borrowing instruments, as they protect the borrower from fluctuations in interest rates and allow for easier budgeting.
The monthly payment for a home loan of $250,000 at a 7% fixed rate for 25 years can be calculated using the following formula:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1+Monthly Interest Rate)^(-Number of Months))
Therefore, the monthly payment for a home loan of $250,000 at a 7% fixed rate for 25 years would be:
Monthly Payment = ($250,000 * 0.0058333) / (1 - (1+0.0058333)^(-300))
Monthly Payment = $1,517.30
This means that the monthly payment for a home loan of $250,000 at a 7% fixed rate for 25 years would be $1,517.30.
To learn more about fixed rate
https://brainly.com/question/27938330
#SPJ4
