The monthly payment for a 15-year mortgage at a rate of 6.8%.

To calculate the monthly payment for a 15-year mortgage at an interest rate of 6.8%, you can use the formula for a fixed-rate mortgage:

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

Where:
- \( M \) = monthly payment
- \( P \) = loan principal (amount borrowed)
- \( r \) = monthly interest rate (annual rate divided by 12)
- \( n \) = total number of payments (loan term in years × 12)

Here’s a breakdown of how to apply it:
1. Convert the annual interest rate to a monthly interest rate: \( r = \frac{6.8\%}{12} = 0.005667 \) (as a decimal).
2. Determine the total number of payments: For a 15-year mortgage, \( n = 15 \times 12 = 180 \).

Once you provide the principal amount \( P \), I can compute the exact monthly payment.

Do you have the loan amount for this calculation?

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Would you like a detailed explanation of the formula and steps involved? Here are some questions to deepen your understanding:

1. How is the monthly interest rate derived from the annual rate?
2. What role does the total number of payments play in the formula?
3. Why does the formula involve compounding (i.e., raising to the power of \( n \))?
4. What is the effect of a higher interest rate on monthly payments?
5. How does the mortgage term (number of years) affect the monthly payment?

**Tip**: Lowering the mortgage term reduces the overall interest paid but increases the monthly payment.

Learn how to calculate the monthly payment for a 15-year mortgage at a 6.8% interest rate using the fixed-rate mortgage formula. Understand how the loan term and interest rate affect monthly payments and explore key financial concepts such as compound interest and amortization. Suitable for Grades 11-12 and college students.

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