If the purchase price for a house is $218,500, what is the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%? a. $1,332.73 b. $1,378.19 c. $1,247.54 d. $646.40
Mathematics · High School · Wed Jan 13 2021
Answered on
Given the statement:
The purchase price for a house is $218,500,
Determine the monthly payment if you put 3.5% down for a 30 year loan with a fixed rate of 6.5%
Solution:
Convert first all the percentage to decimal, then take the percentage amount of the original price. In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.
= 3.5/100
= 0.35
= 6.5/100
= 0.065
Subtract the downpayment of 3.5%.
= (0.035)($218,500)
= $7,647.5
= $218,500 - $7,647.5
=$210,852.5
Divide the remaining amount by 360, since there are 360 months in 30 years.
=$210,852.5/360
= $585.70
Take 6.5% of 585 then add it 585.
= (0.065)(585)
= $38.025
= $38.025 + $585
= $623.025
Final answer:
= $623.025