Question

Please help! Multiple choice! I will give 20 points!

Martha is buying a house for $107,820. She is making a 15% down payment and financing the remainder at 6.5% for 25 years. What are her monthly payments?

1. $96,138
2.$618.62
3.$91,647
4.$583.45

Answer 1

her payment would be 4.$583.45

Answer 2

Hi there
First find the amount of the loan
107,820−107,820×0.15
=91,647
now find the monthly payment using the formula of the present value of annuity ordinary
Pmt=pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
Pmt=91,647÷((1−(1+0.065÷12)^(
−12×25))÷(0.065÷12))
=618.81 ....answer

Closed to option 2

Hope it helps