Question

A house sells for $242,000 and a 20% down payment is made. A 15-year mortgage at 6.5% was obtained.

(i)Find the down payment.

(ii)Find the amount of the mortgage.

(iii)Find the monthly payment.

(iv)Find the total interest paid

Answer 1

cost of the house is $242,000

a down payment is 20% of the cost

down payment = 242000(0.2)

down payment = 48400

.

amount of the mortgage = cost - downpayment

amount of the mortgage = 242000-48400

amount of the mortgage = 193600

.

L=193600

r=6.5% = 0.065

t=15 years

n=12 for monthly payment

...................monthly payment.

.

.

interest is given by

.................. total interest paid