Question

Jason Aldeen bought a house for $275,000. He made a down payment of 15%. The interest rate is 4.2% for 15 years.

Answer 1

Answer:

Step-by-step explanation:

Jason's down payment= $41250

Amount he needs to borrow is

275000-41250 = $233750

Jason's monthly payment would be

248476.25/180 = $1380.42

The original cost of the house that Jason Aldeen bought is $275,000. He made a down payment of 15%. This means he paid 15% of the original cost of the house. Therefore,

Jason's down payment is 15% of $275000

= 15/100 × 275000 =0.15×275000

=$41250

Since Jason's down payment is smaller than the original cost of the house, he would need to borrow.

Amount he needs to borrow is

275000-41250 = $233750

If Jason borrows $233750 at a rate of 4.2% for 15 years

Total interest on $233750 for 15 years will be

= (233750×4.2×15) /100

= 14726250/100 = $14726.25

Total amount to be paid for 15 years will be amount borrowed + interest

=233750 + 14726.25 = $248476.25

Converting 15 years to months,

15 × 12 months = 180 months.

Jason's monthly payment would be

248476.25/180 = $1380.42