Question

A $104,000 selling price with $24,000 down at 81⁄2% for 25 years results in a monthly payment of

Answer 1

Okay so first I am taking it that you have to subtract 24k from the 104k which brings it to 80,000.
I am also taking it that the 8.5% is suppose to be in decimal form which makes it .085%
Take the 80,000 and use the monthly payment formula, which is really easy to use.
Monthly payment should be 644.18

Answer 2

`\bf \qquad \qquad \textit{Future Value of an ordinary annuity} \\\\ FV=pymnt\left[ \cfrac{\left( 1+(r)/(n) \right)^(nt)-1}{(r)/(n)} \right] \\\\ \qquad \begin{cases} FV=\textit{future value}\to & \begin{array}{llll} 104,000\\ -24,000\\ -----\\ 80,000 \end{array}\\ pymnt=\textit{periodic payments}\\ r=rate\to 8(1)/(2)\%\to (8.5)/(100)\to &0.085\\ n= \begin{array}{llll} \textit{times it compounds per year}\\ \textit{monthly payments, means 12} \end{array}\to &12\\ t=years\to &25 \end{cases}`


`\bf thus \\\\ 80,000=pymnt\left[ \cfrac{\left( 1+(0.085)/(12) \right)^(12\cdot 25)-1}{(0.085)/(12)} \right]`

solve for "pymnt"