Question

You want to buy a $239,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan for

the rest
a) How much is the loan amount going to be?
b) What will your monthly payments be if the interest rate is 5%?
$
c) What will your monthly payments be if the interest rate is 6%?
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Answer 1

Answer: a) 191200 b) 557.67 c) 562.98

Explanation:

a) 239000 times .8 (aka 80%) = 191200

b) 191200/(12 times 30) = 531.11

531.11 times 1.05 (5%) = 557.667

Round to nearest cent: 557.67

c) 191200/(12 times 30) = 531.11

531.11 times 1.06 (6%) = 562.978

Round to nearest cent: 562.98