with no down payment, his mortgage payment will be
250000 * 0.019/12 / (1 - (1 + 0.019/12)^-240) = 1252.90
so we need to find a P where
P * 0.019/12 / (1 - (1 + 0.019/12)^-240) = 1150
P = 229467
So he needs a down payment of $20,533
check my math. I can already see that choice D has a typo, but it's close to what I got
-I need help with this question I keep getting an answer that is not an option. Plz explain how to do it so I know how to do some other problems on my test. Thanks!
Gerry is buying 80 acres of farmland that cost $250,000. He will take out a 20-year loan with a 1.9% annual interest rate, and he can afford a $1,150 monthly payment.
What minimum down payment must Gerry make to keep his monthly payment at or below $1,150?
(Answers are rounded to the nearest 10 dollars.)
$3,3103 dollars
$4,3604 dollars
$26,00026 dollars
$20,53020 dollars
1 answer