Answer:
Option B is correct.
The monthly payment is $662.46
Explanation:
Kendall is buying a home for $119,000
She is making 12% down payment
Amount of down payment = 0.12 x 119000 = 14280
Amount for laon = 119000 - 14280 = 104,720
Rate of interest = 4.5% for 20-years loan.
We are given a table for particular year for particular rate of interest monthly payment.
First we check how much monthly payment per thousands.
Monthly payment for $1000 = 6.326
She had loan amount $104,720
First we find number of thousands in this value.
So, we will divide by 1000
Number of thousands = 104720 ÷ 1000 = 104.72
Monthly payment = 104.72 x 6.326 = $662.46
Hence, The monthly payment is $662.46