Answer:
The amount of the loan is going to be $ 182,700, and the monthly payments, if the interest is 6%, are going to be $ 537.95, while if the interest is 7%, are going to be $ 543.02.
Explanation:
Given that you want to buy a $ 203,000 home, and you plan to pay 10% as a down payment, and take out a 30 year loan for the rest, for A) determine how much is the loan amount going to be, B) determine what will your monthly payments be if the interest rate is 6%, and C) determine what will your monthly payments be if the interest rate is 7%, the following calculations must be made:
A) 100 - 10 = 90
203,000 x 0.90 = X
182,700 = X
B) (182,700 x 1.06) / (30 x 12) = X
193,662 / 360 = X
537.95 = X
C) (182,700 x 1.07) / (30 x 12) = X
195,489 / 360 = X
543.025 = X
Therefore, the amount of the loan is going to be $ 182,700, and the monthly payments, if the interest is 6%, are going to be $ 537.95, while if the interest is 7%, are going to be $ 543.02.