The correct option is C. $9,93216
Step-by-step explanation:
Consider the provided information.
Lydia bought a home for $140,000. She put 20% down with a mortgage rate of 7.5% for 25 years.
That means now she need to pay only 80%.
140000 × 80 %= $112,000
Therefore she borrowed $112,000.
Mortgage rate of 7.5%=0.075 per year.
Monthly rate of interest =
Number of number of payments is:12(25) = 300
We can calculate the monthly payment c by using the formula:
Where, r is the monthly rate of interest. P is the borrowed amount.
N loan's term.
Substitute the respective values in the above formula.
Hence, the monthly payment is $827.67.
We need to find yearly payment, therefore.
$827.67×12≈$9932.04
Hence, the correct option is C. $9,93216
c.5
Step-by-step explanation: