A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of:

Name: A $104,000 selling price with $24,000 down at 8 1/2% for 25 years results in a monthly payment of:
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

The correct answer is A because the monthly payment is calculated as follows:Loan amount = $104,000 - $24,000 = $80,000Interest rate = 8.5% / 12 = 0.007083Number of months = 25 * 12 = 300Monthly payment = $80,000 * 0.007083 * (1 + 0.007083)^300 / ((1 + 0.007083)^300 - 1) = $644.80

A $104,000 Selling Price with $24,000 Down at 8 1/2