Diane and Jim have purchased a house using a fixed-rate mortgage. The annual interest rate is 7.2% compounded monthly for 25 years. The mortgage amount is $580,000. What is the monthly payment on the mortgage?

A = P(1+r/n)^nt

580,000= P(1+0.072/12)^25*12

580,000= P(1.006)^300

580,000= 6.017P

P= 580,000/6.017

P= 96,393.55

The monthly payment is 96,393.55

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