Answer to Question #29433 in Management for Patrisia reed

Question

Allen bought a home in Texas for 108,000. He made a 25% down payment Bill and obtained a mortgage for 30years at 9%. What is Bill's monthlypayment and what is the total interest cost of the loan

Answer 1

25% corresponds to 0.25 , 9% corresponds to 0.09
0.25*108000=27000& down payment
108000-27000=81000 mortgage for 30 years
0.09*81000=7290 total interest cost of the loan
81000+7290=88290 total mortgage for 30 years
88290/30/12=245.25 monthly payment
Answer: 245.25 monthly payment, 7290 total interest.