ind the monthly payment needed to amortize principal and terest for the following fixed-rate mortgage. 1ortgage amount: \( \$ 78,000 \) erm of mortgage: 15 years nterest rate: \( 5.5 \% \)

To find the monthly payment for a fixed-rate mortgage, you can use the formula: \[ M = P \frac{r(1 + r)^n}{(1 + r)^n - 1} \] where \( M \) is the total monthly mortgage payment, \( P \) is the loan principal (in this case, \( \$78,000 \)), \( r \) is the monthly interest rate (annual rate ÷ 12), and \( n \) is the number of payments (loan term in months). For your mortgage, the monthly interest rate \( r \) is \( \frac{5.5\%}{12} = 0.004583 \), and the number of payments \( n \) for 15 years is \( 15 \times 12 = 180 \). Plugging these values into the formula gives you a monthly payment of approximately \( \$ 658.37 \). To remember the formula easily, think of it as taking the principal amount and breaking it down over time, while simultaneously adding interest in a sneaky manner. This way, you're always paying off a bit of your principal alongside your interest, making it less daunting than it sounds! Just keep in mind that most first-time buyers underestimate how much these little figures can add up, so it's good to budget accordingly.