Question

If the purchase price for a house is $218,500, what is the monthly payment if you put 3. 5% down for a 30 year loan with a fixed rate of 6. 5%? a. $1,332. 73 b. $1,378. 19 c. $1,247. 54 d. $646. 40.

Answer 1

Answer: A $1,332.73

Step-by-step explanation:

Answer 2

The monthly payment if you put 3. 5% down is a. $1,332. 73.

Down payment=218,500 - (218.500×3.5%)

Down payment=218.500-7,647.5

Down payment=210,852.50

Time = 12×30=360 months

rate=6.5/1,200 = 0.005416667

Using the loan payment formula

Monthly payment = (Rate + [Rate / (((1 + rate)^months) -1)] × Principal

Let plug in the formula

Monthly payment = (0.005416667 + [0.005416667 / (((1.005416667)^360)-1)] × principal

Monthly payment = (0.005416667 + [0.005416667 / (((1.005416667)^360)-1)] ×principal

Monthly payment = 0.005416667 + [(0.005416667 / 6.9917988084 -1)] ×210,852.50

Monthly payment = 0.005416667 + [(0.005416667 / 5.9917988084)] × 210,852.50

Monthly payment = 0.005416667 + [(0.005416667 / 5.9917988084)] × 210,852.50

Monthly payment = (0.005416667 + 0.0009040135) × 210,852.50

Monthly payment = 0.0063206805× 210,852.50

Monthly payment = 1,332.73

Inconclusion the monthly payment if you put 3. 5% down is a. $1,332. 73.

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