To determine the monthly mortgage payment:
[tex]\begin{gathered} Pr\text{incipal = \$100,000} \\ Interest\text{ rate = 7 \%} \\ fixed\text{ payment time = 30 years} \end{gathered}[/tex]Hint :multiply the monthly mortgage payment by 12
The annual interest rate (r) on the loan, but beware that this is not necessarily the APR = interest divide by 12
[tex]\text{APR=7 \%/12 = 0.07/12=0.00583}[/tex]Using a Loan calculator
[tex]\begin{gathered} \mleft\lbrace100,000\times.0.07/12\times\mleft[1+0.07/12^{12(30)^{}}\mright]\}/\mleft\{\mleft[1+0.07/12^{12}\mleft(30\mright)\mright]-1\mright\}\mright?\text{ } \\ =\text{ \$665} \end{gathered}[/tex]With a $100,000 home loan, you will pay $665 monthly and over a year , Aaron will pay 12 x $665
[tex]\begin{gathered} 1\text{ month payment = \$665} \\ 12\text{ month payment = 12 }\times\text{ \$665} \\ \text{ = \$7980} \end{gathered}[/tex]Therefore the payment over one year = $ 7980
