Answer:
Sofia's monthly payments will be $ 1,222.22.
Step-by-step explanation:
Given that Sofia is purchasing a home for a list price of $ 245,000, and she has a down payment of $ 25,000 and takes out a 20 year mortgage for the remainder at 5 annual interest, to determine her monthly payments the following calculation must be performed:
((245,000 - 25,000) x 0.05 x 20 + (245,000 - 25,000)) / 30 x 12 = X
(220,000 x 0.05 x 20 + 220,000) / 360 = X
(11,000 x 20 + 220,000) / 360 = X
(220,000 + 220,000) / 360 = X
440,000 / 360 = X
1,222.22 = X
Therefore, Sofia's monthly payments will be $ 1,222.22.
