Answer:
His yearly payment is $12507.095
Step-by-step explanation:
We are given
Chin Woo bought a home for $160,000
He put down 20 percent
It means that down payment is 20% of price of home
and he took loan of remaining amount
so, present value is 80% of 160000


The mortgage is at 8 1/2 % for 25 years
so, r=8.5%=0.085
t=25
now, we can use payment formula

now, we can plug values

now, we can solve for P
we get

so,
His yearly payment is $12507.095