Answer : Monthly Payment = $ 2451.25

Working notes for the above answer

We have provided with the information as under

Suzan long is considering buying a home for $350,000.

. she makes a down payment of $50,000

takes out a mortgage on the rest of the money at 5.5% compunded monthly,

Period is 15 years = 180 months

Calculation for the monthly payment is as under

Formulla

Yearly rate is 5.5 so monthly rate is 5.5/12 =0.4583

payment = [$300,000(1 + .00458)180 x 0 .00458 / [(1 +0 .00458)180 – 1]

= $2451.25