Answer:
$62.50
Step-by-step explanation:
The amount of private mortgage insurance required in this case per annum is 0.75% of the entire loan which is $100,000.
Annual insurance=0.75%*loan amount
Annual insurance=0.75%*$100,000
Annual insurance=$750
Since the annual cost of mortgage insurance per year is established, monthly cost would be annual cost divided by 12 months is which is number of months in a year that payments are to be made
monthly payment=$750/12
monthly payment=$62.50
