Question

Question #1 - A new housing development offers homes with a mortgage of $222,000 for 25 years at an annual interest of 8%. Find the monthly mortgage payment.
Question #2 - A Chevrolet was purchased for $23, 750 and a 20% down payment was made. Find the amount financed

Answer 1

Answer:

monthly mortgage payment is $1713.42 per month

so amount financed = $19,000  

Step-by-step explanation:

given data

principal = $222,000

time = 25 year

annual interest rate = 8%

purchased = $23,750

down payment = 20%

to find out

monthly mortgage payment and amount financed

solution

first we get here monthly mortgage payment that is express a s

monthly mortgage payment = principal × $\frac{r(1+r)^{t}}{(1+r)^t -1}$   ....................1

here r is rate per month = $\frac{0.08}{12}$ and t is time = 12 ×  25 = 300 months

so put here value we get

monthly mortgage payment = principal × $\frac{r(1+r)^{t}}{(1+r)^t -1}$

monthly mortgage payment = 222000 × $\frac{\frac{0.08}{12}(1+\frac{0.08}{12})^{300}}{(1+\frac{0.08}{12})^300 -1}$

monthly mortgage payment = $1713.432007

monthly mortgage payment is $1713.42 per month

and

we know  20% is down payment

so financed is = 100 - 20 = 80%

amount financed will be

amount financed = 80% × $23750

so amount financed = $19,000