Suppose you want to borrow ​$105 comma 000 and you find a bank offering a 25​-year term for a loan of that​ amount, with an APR of 13​%. Complete parts ​(a) and ​(b) below.
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Part 1
​(a) What are your monthly​ payments?
PMTequals​$
  
enter your response here
​(Round to the nearest cent as​ needed.)

To calculate your monthly payments for the loan, we can use the formula for the monthly payment on an amortized loan:

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

Where:
- $ PMT $ is the monthly payment.
- $ P $ is the principal loan amount, which is $105,000.
- $ r $ is the monthly interest rate (APR divided by 12). Since the APR is 13%, the monthly rate will be $ 0.13 / 12 $.
- $ n $ is the number of total payments (loan term in months). For a 25-year loan, $ n = 25 \times 12 = 300 $ months.

Let me calculate the monthly payment for you.Your monthly payment for the loan would be approximately **$1,184.23**.

Would you like more details or have any questions? Here are some related questions to expand on this:

1. How is the total interest paid over the loan term calculated?
2. What would happen to the monthly payment if the interest rate increased?
3. How does the loan term affect the total cost of the loan?
4. What is the formula to calculate the loan balance after a certain number of payments?
5. How would extra payments affect the loan payoff time?

**Tip:** Making extra payments toward the principal can significantly reduce the total interest you pay over the life of a loan.

Suppose you want to borrow ​$105,000 and you find a bank offering a 25​-year term for a loan of that​ amount, with an APR of 13%. Complete parts ​(a) and ​(b) below. (a) What are your monthly​ payments? (Round to the nearest cent as​ needed.)

Learn how to calculate monthly payments for a $105,000 loan with a 13% APR over a 25-year term. This problem covers key finance concepts such as loan amortization, interest rates, and monthly payments. The step-by-step solution provides detailed calculations and practical financial insights. Suitable for finance students or anyone looking to understand loan structures.

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