QuestionUse Desmos.com to determine the monthly mortgage payment on a $\$ 500,000$ home with a 30 -year mortgage with $3 \%$ annual interest compounded monthly.

Studdy Solution
Simplify and compute the final value using the values of the exponential terms.
First, calculate $(1 + 0.0025)^{360}$:
$$(1 + 0.0025)^{360} \approx 2.4273$$
Then substitute this back into the formula:
$$M = 500,000 \frac{0.0025 \cdot 2.4273}{2.4273 - 1}$$
$$M = 500,000 \frac{0.00606825}{1.4273}$$
$$M \approx 500,000 \times 0.004251$$
$$M \approx 2125.50$$
Therefore, the monthly mortgage payment is approximately $\$2125.50$.