Find the monthly payment on:
Thirty-year mortgage for $240,000 at 3.42%.

To calculate the monthly payment on a 30-year mortgage, we use the formula for a fixed-rate mortgage:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ M $ is the monthly payment,
- $ P $ is the loan amount (in this case, $240,000),
- $ r $ is the monthly interest rate (annual interest rate divided by 12),
- $ n $ is the number of payments (loan term in years multiplied by 12).

Let's compute the values step-by-step:

1. **Loan amount (P)** = $240,000
2. **Annual interest rate** = 3.42%, so the monthly interest rate is:
\[
r = \frac{3.42}{100 \times 12} = 0.00285
\]
3. **Number of payments (n)** = 30 years $\times$ 12 months/year = 360 months.

Now, plugging these into the formula:

\[
M = \frac{240,000 \cdot 0.00285 \cdot (1 + 0.00285)^{360}}{(1 + 0.00285)^{360} - 1}
\]

I'll calculate this.The monthly payment for a 30-year mortgage of $240,000 at an interest rate of 3.42% would be approximately **$1,067.02**.

Would you like more details or have any questions?

Here are 5 related questions you might find useful:
1. How does the interest rate affect the monthly payment on a mortgage?
2. What happens if you reduce the loan term to 15 years with the same interest rate?
3. How much total interest will be paid over the 30 years?
4. How can making additional payments impact the overall cost of the loan?
5. What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?

**Tip:** Even a small extra payment toward the principal can significantly reduce the total interest paid over the life of the loan.

Find the monthly payment on: Thirty-year mortgage for $240,000 at 3.42%.

Learn how to calculate the monthly payment on a 30-year mortgage of $240,000 at a 3.42% interest rate. Using the mortgage formula, this problem demonstrates key concepts like exponential functions and interest rate calculations. Suitable for college students or advanced high school students.

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