Answer: $671.03
The formula to use is:
[tex]M=P\times\frac{i_{monthly}}{1-(1+i_{monthly})^{-L_{months}}}[/tex]Where
M is monthly payment
P is the loan amount
i is monthly interest rate in decimal
l is length of loan in months
Now,
P is 125000
i is 5% = 0.05, but monthly it is 0.05/12 = 0.00416
L is 30 years means 30*12 = 360 months
Plugging into formula, we get:
[tex]\begin{gathered} M=125000\times\frac{0.00416_{}}{1-(1+0.00416)^{-360_{}}} \\ M=125000\times\frac{0.00416}{1-(1.00416)^{-360}} \\ M=671.03 \end{gathered}[/tex]