Question

Carla is buying a home for $178,000 she is making a 25% down payment and financing the rest of the 25 year loan at 5.75% interest what will her total payment for the home be round your answer to the nearest dollar

Answer 1

Answer: $296,455

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Answer 2

$296413 has to be paid by Carla for home.

Explanation:

Carla is buying a home worth $ 178000. She is making 25% down payment means payment done = 178000×0.25 = $44500

Remaining amount = 178000-44500 = $133500

Since formula of monthly installments is

`EMI=(P.r.(1+r)^(n) )/((1+r)^(n)-1)`

Here P = $133500

r = 5.75/(12×100)=0.00479

n = 300 months

`EMI=(133500(.00479)(1+.00479)^(300) )/((1+.00479)^(300)-1)=(133500(.00479)(4.1936))/(4.1936-1)`

Monthly Installments = $839.71

Total payment to be done = 839.71×300 + 44500 = $296413

She has to pay $296413.