Question

You want to buy a $203,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. or a) How much is the loan amount going to be? $ b) What will your monthly payments be if the interest rate is 6%? $ c) What will your monthly payments be if the interest rate is 7%?​

Answer 1

Answer:

The amount of the loan is going to be $ 182,700, and the monthly payments, if the interest is 6%, are going to be $ 537.95, while if the interest is 7%, are going to be $ 543.02.

Step-by-step explanation:

Given that you want to buy a $ 203,000 home, and you plan to pay 10% as a down payment, and take out a 30 year loan for the rest, for A) determine how much is the loan amount going to be, B) determine what will your monthly payments be if the interest rate is 6%, and C) determine what will your monthly payments be if the interest rate is 7%, the following calculations must be made:

A) 100 - 10 = 90

203,000 x 0.90 = X

182,700 = X

B) (182,700 x 1.06) / (30 x 12) = X

193,662 / 360 = X

537.95 = X

C) (182,700 x 1.07) / (30 x 12) = X

195,489 / 360 = X

543.025 = X

Therefore, the amount of the loan is going to be $ 182,700, and the monthly payments, if the interest is 6%, are going to be $ 537.95, while if the interest is 7%, are going to be $ 543.02.