Answer:
$674.17
Explanation:
Total cost of the house = $100,000. If she pays $20,000 as down payment, the cost of the house left is
$100,000 - $20,000
= $80,000
From the question if she gets 5% mortgage annually, the amount she would be paying per year for her mortgage is
= 5% × $80,000
= 5/100 × $80,000
= $4,000
To calculate how much per month she would be paying for her mortgage,
Since 12 months = 1 year
= $4,000 ÷ 12 months
= $333.333
From the question, we find out that that annual cost of owning the house is 4.09% of the value of the house.
The value of the house is 100000
The amount she would pay to own the house per year =
4.09% × $100,000
4.09/100 × $100,000
= $4,090
Since 12 months = 1 year
The amount Donna would pay per month to own the house is
$4,090 ÷ 12 months
= $340.833
Therefore, the first monthly cost Donna would be paying
= monthly mortgage payment + monthly payment to own the house
=$333.333 + $340.833
= $674.166
Approximately = $674.17
