Question

HELLLLLLLLLLLLLLLLLLLLLLPPPPPPPPPPPPPP!!! 98POINTS

Answer 1

Answer:

$1699.25

Step-by-step explanation:

Data:

                 Cost = $314 000

Down payment = 18 %

               Term = 20 yr

                       i = 5 %/yr  

Calculations:

(a) Down payment

Down payment = 314 000 × 0.18

                         = $56 520

(b) Amount financed

                  Cost = $314 000

-Down payment =   56 520

          Financed = $257 480

(c) Monthly payments

The formula for the monthly payment (P) on a loan of A dollars that is paid back in equal monthly payments over n months, at an annual interest rate of i % is

$P = A(\frac{i}{1-(1+i)^{-n}})$

We must express the interest rate on a monthly basis.

I = 5 %/yr = 0.41 667 %/mo = 0.004 1667

n = 2 × 12 = 240 mo

$P = 257 480(\frac{0.004 1667}{1 - (1+0.004 1667)^{-240}})$

$P = \frac{1072.83}{1- (1.004 1667)^{-240}}$

$P = \frac{1072.83}{1 - 0.368 645}$

$P = \frac{1072.83}{0.631 355}$

P = $1699.25

Carlos' monthly mortgage payment will be $1699.25.