Question

If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a

fixed rate of 6.5%?
a. $1,332.73
b. $1,378.19
C. $1,247.54
d. $646.40

Answer 1

218,500 - (3.5% down payment) =

210,852.50

30 years = 360 months

rate 6.5%

Use the loan payment formula (REALLY complex - see attached).

rate = 6.5/1,200 = 0.005416667

monthly payment = (rate + [rate / (((1 + rate)^months) -1)] * principal

monthly payment = (0.005416667 + [0.005416667 / (((1.005416667)^360)-1)] * principal

monthly payment = (0.005416667 + [0.005416667 / (((1.005416667)^360)-1)] * principal

monthly payment = 0.005416667 + [(0.005416667 / 6.9917988084 -1)] * 210,852.50

monthly payment = 0.005416667 + [(0.005416667 / 5.9917988084)] * 210,852.50

monthly payment = 0.005416667 + [(0.005416667 / 5.9917988084)] * 210,852.50

monthly payment = (0.005416667 + 0.0009040135) * 210,852.50

monthly payment = 0.0063206805 * 210,852.50

monthly payment = 1,332.73

Answer is a.

Answer 2

The answer is the first one a hope that helped