Brad decides to purchase a $240,000
 house. He wants to finance the entire balance. He has received an APR of 3.8%
 for a 15
-year mortgage. What is Brad’s monthly payment? Round your answer to the nearest hundredth.

To calculate Brad's monthly mortgage payment, we can use the formula for the monthly payment on a fixed-rate mortgage:

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

Where:
- $M$ is the monthly payment.
- $P$ is the loan amount (in this case, $ P = 240,000 $).
- $r$ is the monthly interest rate, which is the annual percentage rate (APR) divided by 12. The APR is 3.8%, so $ r = \frac{3.8\%}{12} = \frac{0.038}{12} $.
- $n$ is the total number of payments over the life of the loan. For a 15-year mortgage, $n = 15 \times 12 = 180$ months.

Now, let's calculate Brad's monthly payment.

Brad's monthly mortgage payment would be approximately $1,751.29.

Do you need more details or have any questions? Here are some related questions you might find helpful:

1. How would Brad's monthly payment change if the mortgage term was 30 years instead of 15 years?
2. What would the monthly payment be if the APR was 4.5% instead of 3.8%?
3. How much interest will Brad pay over the 15-year mortgage term?
4. What would happen if Brad made an extra monthly payment of $100?
5. How does a mortgage's APR affect the overall cost of a loan?

**Tip**: Reducing the term of a mortgage typically increases monthly payments but can significantly reduce the total interest paid.

Brad decides to purchase a $240,000 house. He wants to finance the entire balance. He has received an APR of 3.8% for a 15-year mortgage. What is Brad’s monthly payment? Round your answer to the nearest hundredth.

Learn how to calculate Brad's monthly mortgage payment for a $240,000 loan with a 3.8% APR over a 15-year term. This step-by-step guide uses the fixed-rate mortgage formula to arrive at a monthly payment of $1,751.29. Suitable for high school students and individuals interested in financial mathematics.

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