Answer:
a or 1. $40,000 is the down payment
b or 2. 180 months = 15 years
c or 3. $168,400 is the left over payment (including mortgage)
d or 4. $935.56 (the monthly payment)
Step-by-step explanation:
1. To calculate the down payment, we need to calculate 20% of $200,000.
200,000 x 0.20 = $40,000
Therefore, the down payment on the home costs $40,000.
2. Now, let's figure out how many months are in 15 years.
15 x 12 = 180
So, the mortgage will be paid in 180 months.
3. Next, we need to find out how much money needs to be paid in the 15 years.
200,000 - 40,000 = $160,000
This price will also include an annual interest rate of 5.25%. So, we need to find 5.25% of $160,000.
160,000 x 0.0525 = $8,400 <--- interest rate when rounded to the nearest cent.
160,000 + 8,400 = $168,400 <--- total amount over 15 years
4. To find the monthly payment, we must divide the total amount of money ( or $168,400), by the number of months, (or 180.)
$168,400 ÷ 180 = $935.56 when rounded to the nearest cent.
Hope this helps! :)
