Question

Cannon took out a mortgage for $85,290 on his new house. If the interest rate is 8.5 percent and the loan is for 25 years, how much will he pay monthly if he must pay $8.05 per $1,000?

Answer 1

Number of thousands on the amount of the loan is
85,290÷1,000=85.29

Monthly payment is
85.29×8.05=686.58

Answer 2

The answer is $686.584

Explanation:

Given is, Cannon pays $8.05 per month for every $1,000, so we have a ratio: 8.05 / 1000

Now, we will find the second ratio which is an unknown payment per month over the price: x / 85290

Equaling them to solve for x :

`(8.05)/(1000)=(x)/(85290)`

`1000x=8.05*85290`

`1000x = 686584.50`

So, x = 686.584

Hence, the answer is $686.584