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Manuel wants to buy a townhouse that costs $63,000. The bank requires a 10% down payment. The rest is financed with a 15-year, fixed-rate mortgage at 9.5% annual interest with monthly payments.Find the required down payment.

a) $6,300
b) $12,600
c) $18,900
d) $31,500

User Jens Kohl
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1 Answer

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Final Answer:

The required down payment is $6,300, calculated as 10% of the townhouse cost. This standard percentage ensures Manuel can secure the property while financing the rest through a mortgage. So the correct option is (a) $6,300.

Step-by-step explanation:

Manuel wants to buy a townhouse for $63,000, and the bank requires a 10% down payment. To find the down payment amount, we calculate 10% of the total cost:

Down Payment =Total Cost× Percentage/ 100

Substituting in the given values:

Down Payment = $63,000 ×10/100

Calculating this gives us:

Down Payment = $63,000 × 0.1 = $6,300

Therefore, the correct answer is (a) $6,300.

In summary, the down payment is calculated by multiplying the total cost of the townhouse by the down payment percentage. In this case, Manuel needs to make a $6,300 down payment.

It's important for homebuyers to understand down payments as they directly impact the initial amount required to secure a property. In this scenario, the 10% down payment is a common requirement, and for Manuel, it amounts to $6,300. This understanding helps individuals plan and manage their finances effectively when entering into a mortgage agreement.So the correct option is (a) $6,300.

User Anxieux
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