Question

3. Joel took out an 80/20 mortgage to buy a house costing $156,000. The first

(80%) mortgage has an interest rate of 6.65%, and the second (20%) mortgage
has an interest rate of 8.9%. Both are 30-year fixed-rate mortgages. Let's help
Joel understand his mortgage better by examining it in greater detail. (6 points:
Part 1 - 1 point; Part II - 1 point; Part III - 1 point; Part IV-1 point; Part V-1 point;
Part VI - 1 point)
Part I: What is the amount of Joel's first mortgage?

Answer 1

Part 1: $207,792

Explanation:

80% of 156,000 is 124,800, and 6.65% of 124,800 is 82,992. 124,800 plus 82,992 equals $207,792.