1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
denpristay [2]
3 years ago
15

(Please show step by step workings)

Mathematics
1 answer:
matrenka [14]3 years ago
5 0

Answer:

a. They will need $90,000.00 for the down payment

b. The mortgage amount (principal) will be $360,000.00

c. The monthly principal payment will be $1,500,00

   The monthly interest payment will be $634.40

d. The total interest they will pay: $152,256.00

Step-by-step explanation:

house price= $450,000

down payment = 20%

20-year mortgage

Interest rate= 3.75%

a. How much they will need for the down payment?

The down payment (DoP) is 20% of the house price

DoP= 20% de $450,000

DoP= 0.20*450,000

DoP= $90,000

b. What will be the mortagage amount (the principal)?

The mortgage amount (MoA) (principal) is the difference between the house price and the down payment.

MoA= $450,000 - $90,000

MoA= $360,000

c. How much will their monthly payment be for the principal and interest?

This equation represents the monthly payment (M):

M=P \frac{r(1+r)^{n} }{(1+r)^{n}-1}

where

P= the principal = $360,000

r= monthly interest rate = 3,75% divided by 12 = 0,31%

n= number of payments = 20 years multiplied by 12 months = 240

Let´s input these data into the equation:

M= 360,000\frac{0.0031(1+0.0031)^{240} }{(1+0.0031)^{240} -1}

M= 360,000\frac{0.0031(1.0031)^{240} }{(1.0031)^{240} -1}

Solving the equation:

M= $2,134.40

the principal component of this M would be

$360,000 divided by the 240 months

So, the principal component of M = $1,500.00

And the interest component of M is the difference

$2,134.40 - $1,500.00

So, the interest component of M = $634.40

d. How much total interest will they pay if they take the full 20 years to pay off the mortgage?

With every payment, they will be paying:

$634.40 per month, multiplied by 240 months

The total interest will be $152,256.00

You might be interested in
Divide the fractions and simplify the answer 1/2 divided by 5/8
Morgarella [4.7K]
4/5. To divide a fraction by a fraction you would flip the second fraction, simplify if possible and multiply like normal. 1/2 x 8/5 1/1 x 4/5 4/5 :)
4 0
3 years ago
Read 2 more answers
To which graph does the point (8, −2) belong?
Leni [432]
D because it is 2<17
4 0
3 years ago
Read 2 more answers
I need help ASAP please
gulaghasi [49]

Answer: x =168

 

Step-by-step explanation:I think it would be 80 plus 88 so its 168.  

4 0
3 years ago
Complete the statement if 8 = m/4 then m - 12 =
Agata [3.3K]
8 = m/4

8(4) = m/4(4)
m = 8(4)
m = 32

m - 12 =
(32) - 12 =
20

Your answer is 20

Hope this helps
8 0
3 years ago
Find the area of this figure. Use 3.14 for π. Write your answer as a decimal. ​
vovangra [49]

Answer:

are=πr²

3.14*8*8

=200.96 inches²

Step-by-step explanation:

5 0
3 years ago
Other questions:
  • 6x^2+42x+72=36 solve
    12·1 answer
  • Which segment is congruent to CD? 15 points !
    5·1 answer
  • Plzz hurry its timed ill give brainliest to first correct answer
    10·2 answers
  • How many lines of symmetry does the figure have?<br><br> 0<br> 1<br> 2<br> 3
    9·2 answers
  • What is the ratio of yellow butterflies to total butterflies? Choose the correct option
    11·1 answer
  • Jamie wants to work no more than 30 hours per week at his two part-time jobs. The first job pays him $14 per hour and the second
    6·1 answer
  • The HCF of two numbers is 16 and their product is 3072. Find their LCM
    7·1 answer
  • The diameter of a round skating rink is 18m. Find the circumference of the rink to the nearest meter.
    14·1 answer
  • 13÷1766 <br>I dont know​
    14·1 answer
  • Find the measure of each angle indicated.<br><br> A) 21°<br> C) 23<br> E) 25°<br> B) 80°<br> D) 20°
    5·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!