Question

Marisa wants to buy a home in Atlanta with a 30-year mortgage that has an annual interest rate of 4.9%. The house she wants is $250,000 and she will make a $55,000 down payment and borrow the remainder. What is Marisa's monthly mortgage payment to the nearest dollar?

Answer 1

Given :

Marisa wants to buy a home in Atlanta with a 30-year mortgage that has an annual interest rate of 4.9%.

The house she wants is $250,000 and she will make a $55,000 down payment and borrow the remainder.

To Find :

What is Marisa's monthly mortgage payment to the nearest dollar.

Solution :

Money remains, m = $( 250000 - 55000 ) = $195000 .

Total price after interest, T = m( 1 + rt )

T = 195000×( 1 + 0.049×1)

T = $204555

Monthly payment,

$M = \dfrac{m}{12}\\\\M = \dfrac{204555}{12}\\\\M =\ 17046.25$

Therefore, monthly payment is $17046.25 .

Hence, this is the required solution.