Asked by Anonymous

Carlos and Max are buying a house. They have $24000 for a down payment. The house price is $150000. If the interest rate is 8.85% compounded monthly, determine the size of the monthly payments they must make over the next 25 years to pay off the house.
Express your answer rounded to the nearest cent!

Answers

Answered by Henry
P = (Po*r*t)/(1-(1+r)^-t).

Po = 150,000-24,000 = $126,000.

r = 8.65%/(12*100%) = 0.0072.

t = 25yrs. * 12mo./yr. = 300 mo.

Monthly Payments = P/t.

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