Question

Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessa’s monthly payments are $1,595.85. How much was Vanessa’s down payment?
a.
$9,314.45
b.
$16,781.25
c.
$40,275.00
d.
$53,040.00



Please select the best answer from the choices provided


A
B
C
D

Answer 1

A

Down payment = 268,500 − loan, where loan = PMT * (1 − (1 + i)^−n)/i.
i = 0.0625/12, n = 360, so loan ≈ 1,595.85 * 162.451 ≈ 259,185.55.
Down payment ≈ 268,500 − 259,185.55 = $9,314.45 → choice A.