Question

Joe Jay purchases a new colonial home for $260,000 putting down 20 percent. He decided to use Loyal Bank for his mortgage. They were offering. 6 1/2 % for 25 year mortgage. The principal after the 1st payment had a balance outstanding of:

Answer 1

260000 *20%=52000 ao rest maount=208000
now 6.5% for 25%
now P=208000 and rate 6.5%
apply
\[p \times(1+r/100) - x(1+r/100)\]
where x is instalment