A swamp business owner gets a 20 year 90,000 mortgage from a credit union if the interest rate is 7% what is the monthly payment?

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

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

Where:
- $M$ = monthly mortgage payment
- $P$ = loan principal (90,000)
- $r$ = monthly interest rate (annual rate divided by 12)
- $n$ = total number of payments (loan term in years multiplied by 12)

Given:
- $P = 90,000$
- Annual interest rate = 7% or 0.07, so the monthly interest rate $r = \frac{0.07}{12}$
- Loan term = 20 years, so $n = 20 \times 12 = 240$ months

Let's calculate this.

I'll work out the monthly payment for you.The monthly payment for the 20-year, $90,000 mortgage at a 7% interest rate would be approximately **$697.77**.

Would you like more details on how this was calculated, or do you have any other questions?

Here are 5 related questions to consider:
1. How does the interest rate affect the monthly payment amount?
2. What is the total interest paid over the life of the loan?
3. How would an increase in the loan term (e.g., to 30 years) impact the monthly payment?
4. What if the interest rate were lower, say 5%, how would that change the monthly payment?
5. How do early repayments affect the total cost of the mortgage?

**Tip**: Making extra payments on your mortgage, even a small amount, can significantly reduce the total interest paid over the life of the loan.

A swamp business owner gets a 20-year $90,000 mortgage from a credit union. If the interest rate is 7%, what is the monthly payment?

Discover how to calculate the monthly payment for a $90,000 mortgage over 20 years at an interest rate of 7%. This example uses the fixed-rate mortgage payment formula and covers essential finance concepts like loan amortization, interest rates, and time value of money. Ideal for students in Grades 11-12 or college-level finance.

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