Question

Darlene Ramirez bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years. What are her yearly payments?

Answer 1

$ 9,932.16 if you need the math just ask ill show it to you.

Answer 2

The yearly payment is $ 10047.60 ( approx )

Explanation:

Since, the yearly payment of a loan is,

`P=(R(P.V.))/(1-(1+R)^(-n))`

Where, R is the annual rate of interest ( in decimals ),

P is the present value of the loan,

n is the time ( in years ),

Given,

A home is bought for $140,000 at 20 % down payment,

Thus, the present value of the loan, P.V. = 140000(100-20)%

= 140000 × 80 %

= 140000 × 0.8

= $ 112,000

Annual rate of interest, R = 7.5 % = 0.075,

n = 25 years,

Hence, the annual payment is,

`P=(112000(0.075))/(1-(1+0.075)^(-25))`

`=\$ 10047.5952247\approx \$ 10047.60`