A $104.000 selling price with $24.000 down at 81/2% for 25 years results in monthly payments of

Pv=104,000-24,000=80,000

Now use the formula of the present value of annuity ordinary

Pv=pmt [ (1 - (1+r/k) ^-kn) / (r/k) ]

Solve for pmt

Pmt = ?

Pv=80000

R 8+1/2=8.5%

K monthly 12

N 25 years

Plug in the formula above then solve for pmt

Pmt=80,000: (((1 - (1+0.085:12) ^ (

-12*25)) : (0.085:12))) = 644.18

The monthly payment would be $289.33

$104,000 - $24,000 = $80,000

$80,000 x %8.5 interest = $6,800

$80,000 + $6,800 = $86,800 (total being paid back)

12 (total of months in a year) x 25 (number of years) = 300

Divide $86,800 by 300 and your monthly payment is $289.33