Question

Cannon took out a mortgage for $85,290 on his new house. If the interest rate is 8.5 percent and the loan is for 25 years, how much will he pay monthly if he must pay $8.05 per $1,000?

Answer 1

Answer:

The answer is $686.584

Step-by-step explanation:

Given is, Cannon pays $8.05 per month for every $1,000, so we have a ratio:   8.05 / 1000  

Now, we will find the second ratio which is an unknown payment per month over the price:   x / 85290  

Equaling them to solve for x :

$\frac{8.05}{1000}=\frac{x}{85290}$

$1000x=8.05*85290$

$1000x = 686584.50$

So, x = 686.584

Hence, the answer is $686.584

Answer 2

Number of thousands on the amount of the loan is
85,290÷1,000=85.29

Monthly payment is
85.29×8.05=686.58