Problem

Question 23 Roberto bought a $\$ 470,000$ house, paying $12 \%$ down, and financing the rest at $6 \%$ interest for 30 years. Her monthly payments are $\$ 2479.74$. How much will he really pay for her $\$ 470,000$ house? Roberto will pay a total of $\$$ for the house.

Solution

Step 1 :\(\text{Down payment} = 0.12 \times 470,000 = 56,400\)

Step 2 :\(\text{Financed amount} = 470,000 - 56,400 = 413,600\)

Step 3 :\(\text{Total number of payments} = 30 \times 12 = 360\)

Step 4 :\(\text{Total amount paid through financing} = 360 \times 2,479.74 = 892,306.40\)

Step 5 :\(\text{Total amount paid} = 56,400 + 892,306.40 = 948,706.40\)

Step 6 :\(\boxed{\text{So, Roberto will pay a total of } 948,706.40 \text{ for the house.}}\)

From Solvely APP
Source: https://solvelyapp.com/problems/l5RpQ77MXu/

Get free Solvely APP to solve your own problems!

solvely Solvely
Download