The table shows the terms of a fixed-rate mortgage.
Which formula should be used to correctly calculate the
monthly mortgage payment?
Component
Cost
O M=p[R(1 – R)"
(P) Principal
$200,000
(1 + R)"
O M=p_[R(1 + R)")
(R) Monthly interest rate
.4%
[(1 + R)" - 1]
R
(n) Total number of
monthly payments (30-
year term)
360
0 M=p
[(1 + R)" – 1]
O M=p[R(1 + R)"}
(M) Monthly payment
$1059.85
(N + R)
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Dr. sperry, a biologist, is using excel to track growth rates of different populations of bacteria. she has a very complex formula in one cell. it begins with “round”. dr. sperry would like to see exactly how excel’s calculation reached the final rounded value that she sees in the cell. what could dr. sperry do to best understand how the calculation was made? try different formulas on her own until she reaches the value shown in excel click on the evaluate formula button in the formulas tab and then click “step in” select the cell and then look at the formula in the formula field of the ribbon remove “round” from the formula in order to see the actual value before rounding

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