Marissa is purchasing a home for $169,000. Her loan has been approved for a 30 year fixed-rate loan at 5 percent annual interest. Marissa will pay 20 percent of the purchase price as a down payment. What will her monthly payment be?

Answer:her monthly payment = $725.78Step-by-step explanation:The cost of Marissa's Home = $169,000.Down-payment = 20% of the cost = 0.2 x 169000 = $33,800.Loan Present Value, PV = $169000 - $33800 = $135,200.Interest rate, R = 5%/12 = 1/240 = 0.004167Tenure, N = 30 years = 30 x 12 = 360 months.[tex]Pmt = \frac{PV*R}{[1-(1+R)^{-N} ]} \\\\Pmt = \frac{135,200*0.004167}{[1-(1+0.004167)^{-360} ]} \\\\Pmt = \$725.78[/tex]Hence, her monthly payment = $725.78