1. **State the problem:** Calculate the monthly mortgage payment for a loan of 170000 financed over 20 years at an APR of 4.25%. 2. **Formula used:** The formula for the regular payment (PMT) on a fixed installment loan is: $$\text{PMT} = \frac{P \times \frac{r}{n}}{1 - \left(1 + \frac{r}{n}\right)^{-nt}}$$ where: - $P$ is the principal amount (170000), - $r$ is the annual interest rate as a decimal (4.25% = 0.0425), - $n$ is the number of payments per year (12 for monthly), - $t$ is the number of years (20). 3. **Substitute the values:** $$P = 170000, \quad r = 0.0425, \quad n = 12, \quad t = 20$$ Calculate $\frac{r}{n}$: $$\frac{0.0425}{12} = 0.0035416667$$ Calculate $nt$: $$12 \times 20 = 240$$ 4. **Calculate the denominator:** $$1 - \left(1 + 0.0035416667\right)^{-240} = 1 - \left(1.0035416667\right)^{-240}$$ Calculate the power term: $$\left(1.0035416667\right)^{-240} = \frac{1}{\left(1.0035416667\right)^{240}}$$ Calculate $\left(1.0035416667\right)^{240}$: $$\left(1.0035416667\right)^{240} \approx 2.34935$$ So: $$\left(1.0035416667\right)^{-240} = \frac{1}{2.34935} \approx 0.4257$$ Therefore the denominator is: $$1 - 0.4257 = 0.5743$$ 5. **Calculate the numerator:** $$170000 \times 0.0035416667 = 601.0833$$ 6. **Calculate the payment:** $$\text{PMT} = \frac{601.0833}{0.5743} \approx 1046.88$$ 7. **Final answer:** The monthly mortgage payment is approximately **1046.88**.