SOLUTION: Felix is purchasing a brownstone townhouse for $2,900,000. To obtain the mortgage, Felix is required to make a 19% down payment. Felix obtains a 25-year mortgage with a
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Question 1136709: Felix is purchasing a brownstone townhouse for $2,900,000. To obtain the mortgage, Felix is required to make a 19% down payment. Felix obtains a 25-year mortgage with an interest rate of 5.5%.
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.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
down payment is 2900000*0.19=$551,000
mortgage is 2900000-551000=2349000
monthly payment=mortgage(1+r/n)^300(r/n)/{[1+(r/n)]^300-1}, the 300 is number of months in 25 years
round at end
1+r/n=1.04583
This will yield $14424.92 a month monthly payment
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