Answer:
Total deposit in each month is $ 932.84
Step-by-step explanation:
Step 1: Monthly interest rate.
Monthly Rate = (1+annual rate)112−1
we have Annual rate = 3.5%
Monthly Rate = (1+0.035)112−1 = 0.0028709
Step 2: monthly payment
Monthly payment can be determined by using below formula:
A=P×i×1−(1+i)−n
A = monthly payment amount
P = total pay amount
i = monthly interest rate
n = total number of payments
In this example we have
P=$150000 ,
i=0.0028709 and
n=12×18=216
Monthly payment = P×i×1−(1+i)−n
= 150000×0.00287091−(1+0.0028709)−216 = 430.6351−(1.0028709)−216
Monthly payment =$ 932.84
