Step-by-step explanation:
Mr. Coffey bought a house for $195,000 with a 20% down payment.
A 20% down payment, would be 0.20, so $195,000 times 0.20 equals $39,000. Then $195,000 - $39,000 = $156,000.
He bought the bouse for $156,000.
5.25% is 0.525, because you move the decimals back. Understanding the total cost of the house is $156,000 now, we can do $156,000 times 5.25% (0.0525) which equals $8,190.
He would pay $8,190 every 30 years. (if this was the interest rate.)
Assuming if the cost was 20% down payment with the 5.25% interest rate then it would have been: $39,000 times 5.25% = 2047.5.
He would pay $2,047.50 every 30 years. (if this was the interest rate.)
There was no context between the interest rate, so let's assume the obvious which is $2,047.50 every 30 years.