Question

anna is buying a house selling for \\$205,000. to obtain the mortgage, anna is required to make a 15\\% down payment. anna obtains a 30-year mortgage with an interest rate of 5\\%.

click the icon to view the table of monthly payments.

a) determine the amount of the required down payment.
b) determine the amount of the mortgage.
c) determine the monthly payment for principal and interest.

Explanation:

Calculate the down payment

$$ \text{Down Payment} = \$205,000 \times 0.15 = \$30,750 $$

Calculate the mortgage principal

$$ \text{Mortgage Amount} = \$205,000 - \$30,750 = \$174,250 $$

Calculate the monthly payment

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Answer:

a) The amount of the required down payment is \$30,750.
b) The amount of the mortgage is \$174,250.
c) The monthly payment for principal and interest is \$935.41.