Mathematics, 18.07.2019 19:30 ibrahimuskalel

Victor earns a gross annual income of $64,570 and is buying a home for $125,340. he is making a 15% down payment and financing the rest with a 20-year loan at 3.75% interest. a. what is the mortgage amount he will borrow? b. can he afford this mortgage? c. what will his monthly mortgage payment be? d. what will his total payment for the house be? e. what is the amount of interest he will pay?

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Part A:

Given that Victor is buying a home for $125,340 and that he is making a 15% down payment.

The amount of down payment is given by 15% of $125,340 = 0.15 x $125,340 = $18,801.

Therefore, the amount of mortgage he needs to borrow is given by $125,340 - $18,801 = $106,539

Part B

Given that he earns a gross annual income of $64,570 and that the loan of $106,539 will be spread for 20 years at 3.75% interest.

$106,539 / 20 = $5,326.95

Roughly he will be paying about $5,000 every year which is way below his annual gross income.

Therefore, he can afford the mortgage.

Part C

The monthly mortgage payment can be calculated using the present value of annuity formula given by

$PV=P\left( \frac{1-\left(1+\left( \frac{r}{t} \right)\right)^{-nt}}{ \frac{r}{t} } \right)$

where: PV is the current value of the loan, P is the periodic (monthly) payment, r is the annual interest rate, t is the number of payment in one year and n is the number of years.

Here, PV = $106,539; r = 3.75% = 0.0375; t is 12 payments in one year (since payment is to be made monthly); n = 20 years.

Thus, we have:

$106,539=P\left( \frac{1-\left(1+\left( \frac{0.0375}{12} \right)\right)^{-20\times12}}{ \frac{0.0375}{12} } \right) \\ \\ =P\left( \frac{1-\left(1+0.003125\right)^{-240}}{0.003125} \right)=P\left( \frac{1-\left(1.003125\right)^{-240}}{0.003125} \right) \\ \\ =P\left( \frac{1-0.472919}{0.003125} \right)=P\left( \frac{0.527081}{0.003125} \right)=168.666P \\ \\ \Rightarrow P= \frac{106,539}{168.666} =631.66$

Therefore, the monthly mortgage payment is $631.66

Part D

Since he will make a monthly payment of $631.66 for 20 years, thus he will make a total of $631.66 x 12 x 20 = $151,598.40

Therefore, his total payment for the house will be $151,598.40

Part E

Since he will make a total payment of $151,598.40 for a mortgage loan of $106,539.

Therefore, the amount of interest he will pay is given by $151,598.40 - $106,539 = $45,059.40

Answer from: Quest

It would be 15 m how i got the answer: (20x20) + b^2 = (25x25)400 + b^2 = 625625-400=225square that and get 15hope this : )
What is the length of the unknown leg in the right triangle ?

What is the length of the unknown leg in the right triangle ?

Answer from: Quest

x=-2

infinite number of lines, so there is an infinite number of equations.

step-by-step explanation:

there are an infinite number of line that passes through the point (-2,5)

x=-2 is one line that passes through the point

y = 5 is another line that passes through the point

(these two lines are perpendicular to each other).

since the number of numbers are infinite and the slope is the ratio of two numbers,(change in y over change in x) we can have an infinite number of slopes. our only condition is that it passes through the point (-2,5)

A. write an equation of a line that passes through (-2, 5). b. how many different equations could y

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