Respuesta :
Answer:
monthly mortgage payment is $1713.42 per month
so amount financed = $19,000
Step-by-step explanation:
given data
principal = $222,000
time = 25 year
annual interest rate = 8%
purchased = $23,750
down payment = 20%
to find out
monthly mortgage payment and amount financed
solution
first we get here monthly mortgage payment that is express a s
monthly mortgage payment = principal × [tex]\frac{r(1+r)^{t}}{(1+r)^t -1}[/tex] ....................1
here r is rate per month = [tex]\frac{0.08}{12}[/tex] and t is time = 12 × 25 = 300 months
so put here value we get
monthly mortgage payment = principal × [tex]\frac{r(1+r)^{t}}{(1+r)^t -1}[/tex]
monthly mortgage payment = 222000 × [tex]\frac{\frac{0.08}{12}(1+\frac{0.08}{12})^{300}}{(1+\frac{0.08}{12})^300 -1}[/tex]
monthly mortgage payment = $1713.432007
monthly mortgage payment is $1713.42 per month
and
we know 20% is down payment
so financed is = 100 - 20 = 80%
amount financed will be
amount financed = 80% × $23750
so amount financed = $19,000
