Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are:

$1,238.00
$12,380.16
$12,830.61
$12,380.61
None of these

Question

Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are:

$1,238.00
$12,380.16
$12,830.61
$12,380.61
None of these

dude · Answer

To find the down payment, you first want to find 20% of 160,000

1- Turn 20% into a decimal, do you know how to do that?

dude · Answer

You're gone so i'll just explain what to do.

Once you get the down payment, you want to subtract it from the original amount, since that is what you have already payed ahead of time.

Total after down payment = x times (1-(1+mortgage rate)^(-time) / mortgage rate

AKA

$128000=x[\large \frac{(1-(1+0.085)^{(-25)})}{0.085}]$

From here you want to solve for x