 Hello and welcome to the session. In this session we are going to discuss the following question and the question says that calculate monthly mortgage payment on $90,000 using formula at 6% annually for 12 years. We know that monthly payment is equal to P into R upon 1 minus 1 plus R whole raised to power minus n where P is equal to the principal amount or amount financed. R is equal to monthly rate of interest and n is equal to total number of payments. With this key idea let us proceed with the solution. According to the question we have to calculate the monthly mortgage payment on $90,000 at 6% rate of interest annually for 12 years. So here the amount financed is equal to $90,000 that means P is equal to $90,000. Rate of interest is equal to 6% annually that is 6 upon 100 which is equal to 0.06 so monthly rate of interest is equal to 0.06 upon 12 which is equal to 0.005 that means R is equal to 0.005 and time period is equal to 12 years. As there are monthly payments we know one year is equal to 12 months. This implies total number of payments will be equal to n which is equal to 12 into 12 that is 144. So now when we put the values in the formula monthly payment is equal to P into R upon 1 minus 1 plus R whole raised to power minus n we get monthly payment equal to 90,000 into 0.005 upon 1 minus 1 plus 0.005 whole raised to power minus 144 that is equal to 90,000 into 0.005 upon 1 minus 1.005 raised to power minus 144. Using a calculator we get 1.005 raised to power minus 144 is equal to 0.4876 that means monthly payment will be equal to 90,000 into 0.005 upon 1 minus 0.4876 which is equal to 90,000 into 0.005 upon 0.5124 Again by using calculator this is equal to 878.22 dollars. So the monthly mortgage payment for the loan is equal to 878.22 dollars. This is the required answer. This completes our session. Hope you enjoyed this session.