Asked by
Yamilet Jaquez
on Dec 20, 2024
Verified
You want to purchase a beach house for $220,000 funding as much of the cost as possible with a home mortgage loan. Banks are currently offering standard thirty year mortgages at 8% (monthly compounding) . Unfortunately, you can only afford payments of $1,500 per month. How much cash will you need for a down payment in order to buy the home? (Round to the nearest dollar)
A) $11,142
B) $13,778
C) $15,575
D) $17,457
Home Mortgage Loan
A loan used to purchase a residential property, secured by the home itself.
Monthly Payments
Regular payments made over a period, such as for loans or utilities, calculated on a monthly basis.
Down Payment
An initial upfront portion of the total amount due, typically associated with the purchase of expensive items like a home or car, which reduces the amount needed to be borrowed.
- Master the calculation and comprehension of payment quantities for mortgages, loans, and annuities, especially in instances of added payments.
Verified Answer
NZ
Learning Objectives
- Master the calculation and comprehension of payment quantities for mortgages, loans, and annuities, especially in instances of added payments.