Question

Roger has found a home to be purchase for $120,372 and has agreed to pay 28% down. Find the amount of Roger's down payment. Find the amount of money that Roger would need to borrow through a mortgage in order to purchase the home.

If Roger found a 30 year mortgage with a 5.9% APR. Find Roger's monthly payment. Using the monthly payment how much did Roger pay over the life of the mortgage?

Round your answer to the nearest cent.

Answer 1

He needs to borrow: 86667.84

His monthly payment would be: 514.06

He would pay a total of: 185061.6 over the life of the loan

Explanation:

roger would need to borrow .72*120372= 86667.84

2.)

calculate the effective rate .059/12= .004916667

`86667.84=x(1-(1+.004916667)^(-30*12))/(.004916667)\\x=514.0585984`

which we round to 514.06

3.) he is going to pay a total of 514.06*30*12= 185061.6 over the life of the loan