Current Attempt in Progress Joe wants to borrow $200,000. If he can get a 30-year loan at a 5% rate, how much will his monthly principal and interest payment be? Here is the time value of money formula for calculating a monthly mortgage payment: Monthly Payment = P I(1+1) N I(1+1)-1 where P = the amount borrowed (mortgage), i interest rate, and n = number of payments. To answer this question, you first need to convert the years to months and the yearly rate of interest to monthly: Number of periods: 30 years x 12 months 360 Monthly interest rate: 5%/12 = 0.004167% Now, plug these figures into the formula as follows: $1073.69 $200,000 or $1073.69 = $200,000 (.004167(1+.004167)360) (1+.004167)360-1 (.004167(4.4683)] (4.4683-1) Help Joe figure out whether he passes the FHA housing payment-to-income ratio if his monthly income is $6,000, the monthly hazard insurance premium is $200, and monthly property taxes are $350. Use an online mortgage affordability calculator to verify your answer. Jo the FHA housing payment-to-income ratio test. fails passes and Media A V A Q Mu Qu Mu Qu Mul Qu Mult