Question

A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of

Answer 1

$\bf \qquad \qquad \textit{Amortized Loan Value} \\\\ pymt=P\left[ \cfrac{\frac{r}{n}}{1-\left( 1+ \frac{r}{n}\right)^{-nt}} \right]$

$\bf \begin{cases} P= \begin{array}{llll} \textit{original amount}\\ \end{array}\to & \begin{array}{rllll} 104000\\ -24000\\ -----\\ 80000 \end{array}\\ pymt=\textit{periodic payments}\\ r=rate\to 8\frac{1}{2}\%\to \frac{8\frac{1}{2}}{100}\to &0.085\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{payments are monthly, thus} \end{array}\to &12\\ t=years\to &25 \end{cases}$