Question

If $100,000 is owed on a house after a down payment, and the monthly payment for principal and interest on a 30-year mortgage is $800, what is the repayment in thousands?

a. $156.25
b. $200.00
c. $225.00
d. $250.00

Answer 1

The repayment in thousands is $288.

Step-by-step explanation:

To find the repayment in thousands, we need to calculate the total amount paid over the 30-year mortgage and then convert it to thousands.

First, let's calculate the total amount paid over 30 years. The monthly payment is $800, so the annual payment is $800 * 12 = $9,600.

The total amount paid over 30 years is $9,600 * 30 = $288,000.

Now, let's convert this amount to thousands. $288,000 / 1,000 = $288.

Therefore, the repayment in thousands is $288.