Question

Ou purchase a $255,000 house and you pay 20 percent down. You obtain a fixed-rate mortgage where the annual interest rate is 5.85 percent and there are 360 monthly payments. What is the monthly payment?

A. $1,215.27
B. $1,203.48
C. $1,194.45
D. $1,367.22
E. $1,504.35

Answer 1

B. $1,203.48

Step-by-step explanation:

In order to solve this you first have to figure out how much of it you borrowed fmor the bank, so if the house is $255,000 the 20% down pay would be 51,000, so 255,000 minus 51,000= $204,000, over 30 years with an annual interest rate of 5.85 percent thats 1,203.48 dollars a month for the next 360 months or 30 years.