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Alma took out an 80/20 mortgage to buy a house costing $175,000. The first
(80%) mortgage has an interest rate of 4.75%, and the second (20%)
mortgage has an interest rate of 7.525%. Both the first mortgage and the
second mortgage are 30-year fixed-rate mortgages. What is her monthly
payment on the first mortgage?

Respuesta :

Answer: $729.508

Step-by-step explanation:

The principle amount is $175000

80% of 175000= 80/100 × 175000

= 0.8 × 175000

= 140000

The formula is:

p × r × (1 + r)^n/(1 + r)^n - 1

For 1st part:

p = 140000

r = 4.75 ÷ 12 ÷ 100=0.00395

n = 12 × 30 = 360

Putting the values in formula we get

140000×0.00395×(1.00395)^360/(1.00395)^360-1

= $729.508

Monthly payment on the first mortgage is $729.508

Answer:

$730.31

Step-by-step explanation:

a a p p e e x x

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