Question

On January 1, 2024, Howell Enterprises purchases a building for $217,000, paying $47,000 down and borrowing the remaining $170,000, signing a 7%, 10-year mortgage. Installment payments of $1,973.84 are due at the end of each month, with the first payment due on January 31, 2024.

a) $0
b) $17,000
c) $47,000
d) $170,000

Answer 1

Howell Enterprises purchased a building for $217,000 with a $47,000 down payment and a borrowed amount of $170,000 for the mortgage to be repaid in monthly installments of $1,973.84.

Step-by-step explanation:

Enterprises purchased a building for $217,000 with a $47,000 down payment and a borrowed amount of $170,000 for the mortgage to be repaid in monthly installments of $1,973.84.On January 1, 2024, Howell Enterprises made a significant financial decision in purchasing a building. They bought the building for $217,000, paying $47,000 down and securing the rest through a mortgage.

The pertinent question here is how much did Howell Enterprises borrow for the mortgage? The answer is that they borrowed $170,000, which is the remaining amount after their down payment. Subsequently, Howell Enterprises is obligated to make monthly installment payments of $1,973.84 towards the mortgage, with the first payment due at the end of the first month, specifically on January 31, 2024.