You are considering purchasing a new home. You will need to borrow $250,000 to purchase the home. A mortgage company offers you a 15 year fixed rate mortgage (180 months) at 9% APR (0.75% month). If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to:
A) $2,585
B) $660
C) $2,535
D) $1,390
Answer: C) PV = 250000 I= 0.75 N= 180 FV = 0 Compute payment = $2535.67