9514 1404 393
Answer:
- $20,330 down
- $193,670 loan
- $560.35 monthly
- $255,677 total price
Step-by-step explanation:
a) The down payment is 9.5% of the price, so is ...
down = 0.095×$214,000 = $20,330
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b) The amount of the loan is the remaining value after the down payment is made:
$214,000 -20,330 = $193,670
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c) The monthly payment is given by the amortization formula:
A = P(r/12)/(1 -(1 +r/12)^(-12t))
payment on Principal P at interest rate r for t years
A = $193,670(0.0115/12)/(1 -(1 +0.0115/12)^(-12·35)) ≈ $560.35
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d) The total cost of the house is ...
down + (monthly payment)×(number of months)
= $20,330 + $560.35×420
= $255,677
