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28 July, 08:43

Jason Aldeen bought a house for $275,000. He made a down payment of 15%. The interest rate is 4.2% for 15 years.

How much was Jason's down payment?

How much does Jason need to borrow?

What is his monthly payment?

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Answers (1)
  1. 28 July, 11:23
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    Step-by-step explanation:

    Jason's down payment = $41250

    Amount he needs to borrow is

    275000-41250 = $233750

    Jason's monthly payment would be

    248476.25/180 = $1380.42

    The original cost of the house that Jason Aldeen bought is $275,000. He made a down payment of 15%. This means he paid 15% of the original cost of the house. Therefore,

    Jason's down payment is 15% of $275000

    = 15/100 * 275000 = 0.15*275000

    =$41250

    Since Jason's down payment is smaller than the original cost of the house, he would need to borrow.

    Amount he needs to borrow is

    275000-41250 = $233750

    If Jason borrows $233750 at a rate of 4.2% for 15 years

    Total interest on $233750 for 15 years will be

    = (233750*4.2*15) / 100

    = 14726250/100 = $14726.25

    Total amount to be paid for 15 years will be amount borrowed + interest

    =233750 + 14726.25 = $248476.25

    Converting 15 years to months,

    15 * 12 months = 180 months.

    Jason's monthly payment would be

    248476.25/180 = $1380.42
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