Chin woo bought a home for $160,000. he put down 20 percent. the mortgage is at 8 1/2 % for 25 years. by using the table in the handbook, his yearly payments are:

His yearly payment is $12507.095

Step-by-step explanation:

We are given

Chin Woo bought a home for $160,000

He put down 20 percent

It means that down payment is 20% of price of home

and he took loan of remaining amount

so, present value is 80% of 160000

The mortgage is at 8 1/2 % for 25 years

so, r=8.5%=0.085

t=25

now, we can use payment formula

now, we can plug values

now, we can solve for P

we get

so,

His yearly payment is $12507.095

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