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Let's solve the problem using the provided mortgage formula and the dataLet's solve the problem using the provided mortgage formula and the 

Given:
- House price: $250,000
- Down payment: 4%
- Mortgage rate: 6% annual interest
- Loan term: 40 years
- Payments per year: 12 (since it's a monthly payment calculation)

We will use the following formula to calculate the monthly mortgage payment $ M $:

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

Where:
- $ P $ is the principal (loan amount)
- $ r $ is the annual interest rate (as a decimal)
- $ n $ is the number of payments per year (12 for monthly payments)
- $ t $ is the number of years (40 years)
  
### Step 1: Calculate the loan amount $ P $
Since there is a 4% down payment on the house price, the loan amount $ P $ is:

\[
P = 250,000 \times (1 - 0.04)
\]

### Step 2: Apply the mortgage formula and solve for the monthly payment.The monthly mortgage payment is approximately **$1,320.51**.

Would you like more details on the calculation or help with further steps? 

Here are five related questions for deeper exploration:
1. How much total interest will be paid over the 40 years?
2. What happens if the loan term is shortened to 30 years?
3. How much more would the payment be if the interest rate was 7%?
4. What is the total amount paid over the life of the loan?
5. How much could you save by increasing the down payment to 10%?

**Tip:** Increasing your down payment or reducing the loan term can significantly lower your total interest payments over the life of the loan.

A house sells for $250,000 and a 4% down payment is made. A mortgage is secured at 6% for 40 years. Do not round intermediate calculations. Round your answers in (a)-(d) to two decimal places, if necessary. Use the formula below as needed to calculate the monthly mortgage payment.

Learn how to calculate the monthly mortgage payment for a $250,000 house with a 4% down payment and a 6% mortgage rate over 40 years. This problem covers mortgage calculation concepts, including the formula for monthly payments and compound interest.

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