Anne took a $778,000 mortgage. The 30-year mortgage has a

Last updated: 7/8/2022

Anne took a $778,000 mortgage. The 30-year mortgage has a 3.25% nominal annual interest rate, but it calls for monthly payments beginning one month later. (Hint: Be careful that it is a "monthly" payment. Therefore, the total number of payments is not equal to the year of Anne's mortgage, but the total number of monthly payments for Anne's 30-year mortgage, that is 12 x 30. Moreover, the monthly rate instead of the annual rate should be used. You can easily get the monthly rate by the nominal annual rate given using the the content discussed in Ch5 Part II, that is, monthly rate = nominal annual rate/12.) What is the dollar amount of each payment Anne pays? $3,385.91 $2,161.11 $25,285.25 $40,986.38