Question

Question #1 - A new housing development offers homes with a mortgage of $222,000 for 25 years at an annual interest of 8%. Find the monthly mortgage payment.

Question #2 - A Chevrolet was purchased for $23, 750 and a 20% down payment was made. Find the amount financed

Answer 1

monthly mortgage payment is $1713.42 per month

so amount financed = $19,000

Explanation:

given data

principal = $222,000

time = 25 year

annual interest rate = 8%

purchased = $23,750

down payment = 20%

to find out

monthly mortgage payment and amount financed

solution

first we get here monthly mortgage payment that is express a s

monthly mortgage payment = principal ×
`(r(1+r)^(t))/((1+r)^t -1)` ....................1

here r is rate per month =
`(0.08)/(12)` and t is time = 12 × 25 = 300 months

so put here value we get

monthly mortgage payment = principal ×
`(r(1+r)^(t))/((1+r)^t -1)`

monthly mortgage payment = 222000 ×
`((0.08)/(12)(1+(0.08)/(12))^(300))/((1+(0.08)/(12))^300 -1)`

monthly mortgage payment = $1713.432007

monthly mortgage payment is $1713.42 per month

and

we know 20% is down payment

so financed is = 100 - 20 = 80%

amount financed will be

amount financed = 80% × $23750

so amount financed = $19,000